Although the number of mortgage applications filed to purchase homes for the week of November 6, 2009 was the lowest level seen in nine years, people still want to purchase homes. According to Freddie Mac, 30-year mortgage rates have been below the 5% mark for at least seven weeks. See what you can do to take advantage of these low rates.


To apply for a house loan, banks normally check the applicant's background, whether they have a good, steady job or some other stable source of income. Credit line is also checked, whether the applicant has been responsibly paying his/her debts well. An applicant must also have collateral as financial back up, as an assurance that the applicant will be paying back the loan in full.


Do some research on how much you can ask from lenders? This will give a general idea in figures of how much you can borrow, how much of your income is needed for the down payment as well as for the succeeding payments. Evaluate how much you can afford to spend for the house loan, in consideration with other existing monthly payments. It is recommended that less than a third of the applicant's monthly income be spent on the payments for the loan and property.


Start saving money for the purchasing of the house before attempting to apply for a house loan. Possible ways of saving for the house loan and property purchase include taking a second job or reducing unnecessary expenses. This initial investment is a good demonstration to the lender of the applicant's good intent in purchasing a house. There are also other options to be considered in obtaining financial support when purchasing a house such as the Veteran's Administration loan for veterans. Consult with your real estate agent regarding other financial support options.


As a result of the recent development in the economy, banks are becoming more stringent in assessing applications. However, there are ways of improving chances when applying for a house loan. In order to prepare for qualifying for a house loan, it is recommended that the applicant obtain a copy of their credit report from a qualified agency. There are services which can send a report annually or directly contact the agencies for an immediate copy. Banks check your credit report and look for your history in repaying loans you have already acquired. Pay back all debts. If this is not completely possible, then make it as low as possible. This is important as it sends a note to the lender of the applicant's reliability in paying back the loan.


Banks look at your ability to repay the loan you are requesting. Other properties in real estate or investments in the stock market are possible sources of collateral.


There are no definite rules that can assure the applicant will obtain the house loan. Loans are approved on a case to case basis. However, following these tips increases the chances of getting the house loan. Do not despair if you are denied a house loan but see it as a sign that there may be areas in your application that need improving.