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Vermont Mortgage Loans

While the nation's median home price is still well below what it was in 2008, the market has begun to show signs of life again. According to the National Association of Realtors, the nation's average home price for March 2009 increased 4 percent over February.

So what does that mean for Vermont residents who are hoping to take advantage of low home prices? While Vermont did experience some of the increase in home prices that occurred during the recent housing boom, the state was not impacted as much as some other states, especially those in the West like Nevada and Arizona. In fact, it looks like home prices in Vermont are on the path to stabilizing.

This stabilization could indicate that Vermont's housing prices have hit the bottom and are on their way to rebounding. Therefore, it is probably a good time for those dreaming of homeownership to take the plunge.

However, while it is a good time in the market, it might or might not be a good time for the individual. One of the factors that compounded the recent fall of the housing market was too many people purchased homes who could not afford the home or who were not ready for homeownership.

In order to determine one's readiness for homeownership, individuals should carefully examine their personal circumstances, with special focus on their credit ratings, their ability to make a down payment toward a new home and the amount of any additional personal savings.

What is Your Credit Score?

Today, lending institutions are far less likely to take changes on a person with poor credit. Many experts are contending that one should have a score in the upper 600s in order to qualify. However, even those individuals will probably not get the best rates. In order to secure the best rates for your mortgage, a credit score that is around 750, which is in the excellent range, is necessary.

So, what if your credit score is not quite high enough to qualify for a new home loan? There are steps you can take to improve your credit score: make sure to make all loan and credit card payments on time, get your credit card balances to below 35 percent of their total limit, and avoid applying for any new credit while you work to fix your current credit score.

How Much Can You Put Down?

It is recommended that you have enough cash on hand to cover a 20 percent down payment. So, if you are purchasing a home for $160,000, then you will need at least $32,000 to go toward the down payment. By making a 20 percent down payment, your monthly mortgage payments will be lower because the loan principle will be less and you will not need to pay for private mortgage insurance.

How Much Do You Have in Savings?

You can't watch the news these days without hearing about our unstable economy. As such, being prepared for the unexpected is more important than ever. Ideally, you should have enough savings set aside to cover your expenses for six months. By having a substantial savings set aside, you will lessen the risk of losing your home should you lose your job. It takes patience and diligence to save up enough to cover six months, but the comfort of having a safety net is worth it.

Find and Compare Rates Today

So, after taking a close look at your credit rating, the amount you would be able to put down and how much savings you have tucked away, you've decided that you are ready for homeownership.

The next step you should take is to collect and compare rates for several home loan options in order to ensure that you get the best deal. All you need to do is complete the brief online form, and you'll receive multiple quotes that you then can compare.

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