Most people who purchase a home today do so with financing, so that usually means they are getting a real estate mortgage. Following the housing and mortgage crisis this fall, getting a real estate mortgage can be tricky and the process has become more daunting. Gone are the days when you could get a mortgage with little or no down payment. With record foreclosures occurring, banks and other lenders are more cautious about lending money to prospective homebuyers. You can still find a mortgage, but you will have to try multiple sources and make sure your personal finances are in order before you do.

The best way you can find a real estate mortgage in today’s economic climate is to try and tap as many resources available as possible when you are searching for financing. While traditional banks may be holding off on approving mortgages, other financial institutions and even some government entities are still lending money to people to purchase homes provided they have a high credit score that is above 750 and can make a down payment that is at least 20%. People who can meet these parameters can get financing and take advantage of the lower housing prices out there.

Mortgage brokers may be the best resource to turn to when you are in the hunt for a real estate mortgage. They act as a conduit between you and the lenders and will try to match you up with lenders that will pre-approve you for a mortgage based on your personal financial information. They will also give you the choice between several different lenders so you can get competitive rates.

While traditional banks may be making it harder to get a real estate mortgage, other financial institutions such as mortgage companies and even some government agencies are willing to provide financing if your financial house is in order. This is why it is so important to obtain a copy of your credit report and know where you stand before you apply for financing. Sometimes credit reports contain errors which can be corrected and can improve your chances of getting approved.

It is a good idea to shop around for various types of lenders for a real estate mortgage. While traditional banks may be making it more challenging to get a mortgage, mortgage companies, savings and loans and even some government institutions may be more open to providing you with a mortgage with terms that are acceptable to you.

While the economic climate remains uncertain, there are still institutions willing to approve you for a real estate mortgage. The important thing is to make sure your credit rating is up to snuff and that you have a large down payment and chances are you will find someone to approve you for a real estate mortgage.

Interest-Only loans have become popular in recent times, partially thanks to the housing boom. Despite it’s popularity, you may not be right for an IO loan. We’ll take a look at a few determining factors to decide if an IO-loan is right for you.

An Interest-only loan is a good choice when you expect your income to rise in the near future. If you’ve got a study to finish, or a promotion to come, you can choose the IO-loan. It gives you low monthly payments now and when the mortgage payments get higher you can afford it because you’ve gone up in income.

If you have ups and downs in your income, an IO-loan can give you the flexibility you need. When times are good, you can pay the interest and pay off some of the principle. When times are not so good, you can choose to pay just the interest and get by that month. One of the ups of an Interest-only loan is the fact that you can pay off principle without a penalty. Don’t make the mistake of spending the extra money on other things than principle, or you’ll get a nasty surprise at the end of your IO-loan.

A lot of first-time home buyers make the choice for an IO-loan because they can afford a higher mortgage amount with this mortgage option. The smart way of doing this is buying a starter house, wait until it rises in value and then sell it for a profit. The mortgage gets paid off and the profit can be used to buy a bigger house with a ‘regular’ mortgage.

An IO-loan calls for financial discipline. When times are good, or when you have money to spare, you can pay off some of the principle on your home. If you fail to do that, you will be hammered with higher mortgage payments eventually.