Based on figures from the U.S. Home Mortgage Disclosures Act (HMDA), about 50.35 percent of mortgage applications in 2014 were successfully closed. That means out of 11,875,464 applications, only 5,979,766 successfully made it.
If you are planning to get your first, second, or even third mortgage soon, here are things you may or may not know about this home-buying option.
You are never too old or too young to get a mortgage
Some people think they are too young or too old to get a mortgage. In fact, this kind of thinking is probably one of the reasons why most people are scared to apply and get their dream homes.
Finance expert wasatchpeaks.com states that while age does play a role in your finances, borrowers can apply for a home mortgage regardless of their age. The important thing is that you can prove that you have sufficient income, whether you are employed or self-employed.
You can still get a mortgage if you are retired
The ideal scenario is that you have already paid off your mortgage by the time you retire. But many U.S. households end up renting up to their retirement. While reasons vary, what is important to know is that you can still apply and get a mortgage even if you are already retired.
If you missed a payment, it does not mean automatic foreclosure
Of course, the best way to ensure that you do not end up paying more than you intend is to pay your mortgage religiously on time or even in advance. There are also those who pay a huge chunk so they can get out of debt faster. But rainy days happen, and there are cases when people miss mortgage payments.
Now, this does not mean automatic foreclosure of the property. The proceedings for property foreclosures are long, and there are options you can take to ensure that you do not lose your home.
Applying for a mortgage is one of the ways you can get your dream home. If you are seeking to apply for one soon, consider these facts so you can make a more informed decision.