Are you considering buying a new home? Home mortgage rates continue to trend in a favorable direction for buyers, meaning many are looking to stop renting and put themselves into the home that they have always dreamed of. Home loans interest rates are more affordable than ever. If you or your family is in the home market and considering a mortgage, we have some helpful tips that will prepare you when you begin your search for the best deal.
Prepare in Advance
The key to securing the best mortgage rate possible is to begin preparing to purchase your home well in advance. Cleaning up your credit score in advance will make securing a favorable rate much easier. Investigate your credit history and plan for when any negative accounts will be removed. A large percentage of lenders require a 680 score for consideration. At most your monthly debt payments, including your potential mortgage, should not exceed about 36% of your monthly income. There are mortgage estimator calculators that can help you figure out what your potential payment will be, allowing you to calculate how much income you will need each month to make it work.
The Facts on Securing the Best Mortgages
Having your credit and monthly income in order is step one. Each lender has its own requirements, but on average you’ll need at least 3.5% of the cost of the home for a down payment. You’ll also need cash set aside to cover the closing costs on the home. Sticking with your employer while going through the home buying process is crucial. Any changes to your employment or income status can stop or greatly delay the mortgage process. Long term home loans interest rates had fallen as low as 3.31% in 2012. It is a buyers market. With the proper knowledge and preparation, securing a home is a very good investment.
Have More Questions?
If you are a potential home buyer then you surely have many questions. If you have questions about types of mortgages, interest rates on home loans, bad credit home loans, home loans interest rates, or any other aspect of the home buying process, there are extensive resources available to help you. Online research can help connect you with a local mortgage lender with experience in your local market.
