While mortgages today are historically cheap, it does not mean you can automatically land a great deal. You need to work for it, and the work involves careful planning.
If you are applying for a new home mortgage, Austin, TX, there’s homework that you need to do not just to qualify but to boost your chances of getting the best offer in the market today.
An application for a new home mortgage, Austin, TX, can be tougher most especially with the waves of COVID-19 pandemic, but the fundamentals that help make it easier are still the same.
Make sure you consider the following:
- Ensure that you have a better credit score upon application (the goal is to achieve between 750-850)
- Work to get a better debt-to-income ratio (this provides a picture of your creditworthiness; it is computed by dividing your monthly debt obligations by your gross monthly income)
- Choose between a fixed and adjustable-rate mortgage (an expert mortgage broker can give good guidance about which one is right for you given your unique case)
- Build a list of prospects and compare their deals; send your application to the most qualified ones.
Tips on boosting credit scores
- See to it that you pay your existing loans – from credit cards to car loans – on-time and you pay down your balances.
- Avoid taking out new loans or even opening a new credit card while you are house-hunting
While working with a mortgage processor
It is worth emphasizing that it is beneficial to take extra effort in gathering all the needed documentation of your income. You can have them handy in case questions arise during underwriting. Remember, mortgage processors are accommodating tons of applications; thus, it will work to your advantage if there is no delay coming from your side of the table.
Are you applying for a new home mortgage, Austin, TX? Talk to a mortgage expert from HomePlus today.
Call us at (512) 949-3385 for more information.