Are you planning to take out a mortgage loan in 2012? You must be aware of the fact that the mortgage rates are at record lows. However, there are some other factors to consider if you want be a homeowner in the coming year.

Down payment is one of the most important factors that borrowers consider before taking out a home loan. You may have to make 20% down payment for getting the best market rate. However, if the home prices go up, then the lenders may require relatively lower down payment.

Another important factor that you must consider is the credit score. Considering the current market scenario, the minimum credit score requirement would be 730 if you want to get the best rate on your home loan.  

The recovery of US economy may result into increased mortgage rate. This is due to the fact that the economic improvement may create a demand for credit thus increasing the home loan rate. It is expected that the interest rate on a 30-year mortgage may go up as high as 5.75%.
    
However, you may get attractive rates for jumbo mortgages in 2010. The rates on expensive home loans have already dropped down to 5.88% in the last week of November. However, banks usually come up with strict lending requirements for offering such a loan. So, you may have to make about 20-40% down payment on your home to get a jumbo loan. Moreover, you may need to have high income along with an exceptional credit score.

Regarding Fed rates, the economists are expecting that the rates would not rise immediately. The Fed may keep rates unchanged till September 2010.

Borrowers, who cannot satisfy the stringent requirements of taking out a mortgage, often take recourse to FHA loans. However, the Obama administration has announced certain steps, due to which, getting an FHA loan may become more difficult in 2010. You may have to pay higher insurance premiums and require a high FICO score to obtain this loan. So, even FHA backed home loans may not be a better alternative in the forthcoming days.