Mortgage loan agreement application National averages of mortgage loans increased last May 12. The 30-year fixed-mortgage rose 4 basis points to 3.97 percent, while the 15-year climbed 5 basis points to 3.17 percent. 5/1 adjustable-rate mortgages also rose by 6 basis points to 3.25 percent.

Such advancement, although natural, can become a trend in the coming months, resulting in higher interest rates all over the United States, even for mortgages here in Fort Myers. That possibility may be the worst nightmare of some home buyers. What’s your worst mortgage nightmare? Perhaps you’re experiencing any of the following:

Lacking Funds

Other than high interest rates, homebuyers can be afraid of lacking the funds for a down payment. This fear stems from the conception that mortgage applications need a 20 percent down payment for approval. In reality, you can get a down payment as low as 10 percent, but you will have to pay private mortgage insurance (PMI) that cost between 0.3 and 1.15 percent of your loan.

Now, you can also apply for a loan that requires no PMI and down payment. When you can only apply for a conventional loan, you can try down payment assistance. The service can help you reach the 20 percent down payment if you don’t want to pay the PMI.

Poor Credit Score

Another nightmare homebuyers have is mortgage denial due to poor credit. In reality, credit score only determines your interest rate, not your loan approval. You can qualify for a conventional loan with at least 650 credit score. VA loans and FHA loans have even lower credit score standards.

Unemployment

Lastly, homebuyers dread failing to make their monthly payments. Failure means foreclosure. These failures come usually because of unemployment. But there’s a way to prevent such a nightmare. Before you apply for a loan and buy a house, you can create an emergency fund that covers at least six months of living expenses, including potential monthly mortgage payments. You can still make payments in this way despite sudden unemployment.

Owning a home can be easier than you imagine. With the following solutions to common homebuyer nightmares, you can ensure a successful and stress-free home buying experience.