Though the mortgage may seem like a modern phenomenon, it actually has been a routine part of life as far back as the first millennium B.C.E. One of the earliest records of mortgage laws are found in the Code of Manu, an ancient Hindu text that has been dated anywhere from 200 C.E. to 1250 B.C.E.! The Code protected homeowners from duplicitous and unfair mortgage lending. Though much has changed since Antiquity, mortgage practices and laws have remained remarkably intact, with potential homeowners seeking support (and, at times, protection) from home mortgage lenders.
Regulations for home mortgage lenders can be extremely complicated, as any homeowner will tell you. There are, however, a couple of things any would-be homeowner should keep in mind. First, manage your money. Though this may seem obvious, proper money management is the key to any successful mortgage loan. Ellie Mae, a prominent mortgage advising company, believes that successful mortgage borrowers should have a mortgage-to-income ratio of about 24%. Moreover, a variety of financial and mortgage analysts agree that a homeowner’s monthly debt payments should not exceed 36% of his or her monthly income — and that includes the mortgage.
It is also wise to be not only conservative with your money but also cautious. What does that mean? Well, the best mortgage lenders tend to choose borrowers based on factors such as credit ratings and employment. One thing any borrower should definitely do is stick with his or her job through the loan process. Any change in employment or income can complicate an already long and complicated process. Top mortgage lenders pay close attention to the financial history of applicants. Home mortgage lenders, after all, take considerable risk every time they offer a loan — even to borrowers they ultimately find trustworthy.
One last bit of advice is to compare mortgage lenders. Each mortgage lender has its own criteria for payments and rights. Not to mention the fact that different mortgage plans have different features, such as interest rates and insurance requirements. There are many other things to consider but as a rule of thumb, being cautious with your money and thorough with the mortgage process is a surefire way to buy the house of your dreams for you and your children. See this link for more references.