Are you looking to buy a new home? Do you need a mortgage, a mortgage broker, or even know what the interest rates for home loans are? Forget about house hunting, just the paper work is enough to make you want to stop thinking about moving. But don’t be daunted, local mortgage lenders will help you make sense of it all and make the process seamless.
A Little Bit About Mortgages
The Code of Manune from ancient India, a Hindu text that rejects fraudulent and deceptive mortgage practices, is one of the earliest accounts of mortgage law. Obviously our mortgage laws have progressed since then. The rise of the U.S. mortgage market began in 1949 and continued until the turn of the new millennium, but toward the end of 2012, long term mortgage rates fell as low as 3.31%.
Applying for a Mortgage
Data gathered by Ellie Mae shows that successful mortgage applicants have, on average, a 24% debt-to-income ratio for housing. The Home Loan Learning Center has said that a large percentage of home mortgage lenders will not make loans to those with credit scores of less than 680. That?s why getting your credit cleaned up and fixing any errors on your credit report are so important. It?s intrinsic to maintaining a good credit score, which will allow you to get the best interest rates on home loans.
Every lender has its own criteria, but in general, you?ll need at least 3.5% of the buying price as a down payment. If you have a low (or lower) credit score, and are looking to buy a home, a larger down payment can help when applying for a low rate mortgage. Another thing to consider, keep your job while going through the home buying process! Any changes in your employment status or income can greatly delay the mortgage process or halt it altogether. It can also affect the interest rates for home loans you?re offered.
Getting the Right Mortgage
If you?re in the marked for a mortgage, lock in a rate as soon as can settle on the numbers with local mortgage lenders, otherwise interest rates for home loans could change. Remember, along with a solid down payment, if you?re applying for low interest home loans, you should have some extra funds set aside to pay for points and cover any closing costs that arise. And avoid large purchases that may decrease available funds before you purchase your new home ? like new appliances; first the house, then the stuff.
It seems like a lot, but you?ve got this. With help of a good mortgage lender, and a little sense, you?ll be moving into your dream home before you can say, ?Why didn?t I learn more about mortgages before??