Home Mortgage Lenders When you want to purchase a new or used home, you may have to visit a home mortgage lender who will agree to lend you enough money to make a purchase. But you will have to be approved first in order to receive the loan. There are many criteria that home mortgage lenders use when considering lending people home loans. The most common include: - Amount needed - Value of the home - Yearly income - Credit history - Other loans Once a lender has reviewed your credit history, bank statements, and other loans, they will give you an answer. The home you want to purchase will have to be appraised to make sure that it costs what it is worth. If not, then most lenders will not grant you a loan because they feel it is not worth the investment. You will have to find another home or try to find another lender. If you have poor credit or defaulted on any loans, you may not be granted a home loan. Those who have poor credit need to find ways to improve their credit by paying off their credit cards, repaying loans on time, and finding ways to save money so that they can put a substantial down payment on a home. Lenders will look at how much you earn each month as compared to how much you are spending in terms of credit card payments and other loans. If your spending exceeds 40% of your monthly income, then you will probably not qualify for a home loan. Sometimes waiting a few years and saving money while paying off credit cards and other loans is a better idea than trying to find a home. Buying a home is not something that people should take lightly and they should not buy a home just because they feel they should. Buying the right home is important because this is the place where you will be living for a while. You may have to invest in repairs, maintenance, and home decoration. There are many home mortgage lenders to choose from when buying a home. It is best to be pre approved for a loan before you find one so that you will be able to stay within your budget. Search for a lender locally, online, or through ads in the newspaper. You may be able to find a better deal online as these lenders are trying to compete with each other as well as other traditional lending institutions. How do you know you have found the best deal? You will know when you have found a lender that offers you a fair interest rate. Interest rates are calculated using your income, credit history, and current interest trends. The better your credit score is, the lower your interest rate will be. Getting a low interest rate will lower your monthly payments and make paying off your home easier and faster. Look for a home mortgage lender that is friendly, resourceful, and honest. If you do not feel comfortable, then walk away and find another lender. There are many to choose from.