There are many people who would like to get home financing so that they are able to get a new home- the homes which they have always dreamed about. Perhaps, you know that getting home financing is not a difficult task due to the large number of home finance companies on the market. However, the difficult part comes if you need 100 percent financing for your future home.
Objectively, there are not many people who need 100 percent home financing because most of them have some money squirreled away. That could not be a lot of money but it will still play a vital role, especially if the house costs a lot. However, those of you who have not thought about the foreseeable future and do not have any saved money probably count on the 100 percent home financing.
You should not think that it is an unachievable task also because it is all very easy if your credit rating is good. You have heard of credit rating, haven’t you? Basically, it is what shows the company or bank what your general financial status is. If you still do not get it, I will explain it more thoroughly right now.
Your credit rating is a certain amount of points which is usually around 680 points. Everyone who has between 670 and 720 is considered as a person with a good finance status but if the points are less than 670 or more than 720 then the person is respectively with a bad or a good finance status. And I bet that you are wondering which criteria are taken into consideration for calculating the credit rating, aren’t you? Basically, those are the monthly salary, other incomes (except for the salary), expenses, properties (whether you are owners or not) and many others. So, your credit rating will be higher when your salary is high or when you are an owner of many and expensive properties.
Once you improve your credit rating, you will certainly be approved for 100 percent home financing. You should not worry about any problems just because there will be none! Your interest will certainly be very favorable (less than 8 per cent) and you will be the one who decides how much time the so called “refunding period” will last. Of course, there are some upper limits- for example $20.000 should be refunded for no more than 10 years.
Hopefully, you have learned everything which you need to know about the 100 percent financing. I can assure you that by making your credit rating better, you will be approved for that sort of home financing!