Four Areas to Work on To Increase the Chances of Getting the Best Mortgage Rates, Tucson, AZ
Mortgage rates, Tucson, AZ, are dynamic; they keep on changing from time to time. This is one of the reasons why many homebuyers consider searching for the best mortgage deals available a challenging task. However, if you are prepared and armed with correct information, the process of getting the best mortgage deal can become a lot easier.
In this post, we are sharing some important tips to take into account in order to find the best mortgage rates available in the market today.
Consider the following:
Make your credit score healthier. Credit scores are used by lenders in measuring how responsible you are in your finances. That is, the higher your score, the better your chances of getting the best mortgage rates, Tucson, AZ. Improving your credit score may take some time, but it is worth the wait when you are saving some serious amount from mortgage rates.
But how you can make it healthier? Paying your debt on schedules, keeping credit reports accurate, fixing late payments, fixing credit utilization ratio are some of the things you can do to improve your credit score.
Figure out how healthy your finances are when it comes to debt-to-income ratio. There are two faces of debt-to-income-ratio. One is the back-end ratio, which calculates the total of all of your monthly minimum debt payments and your proposed new housing payment, divided by your stable monthly income (gross). The front-end ratio, on the other hand, takes aim at housing costs only (all other debts not included). History can tell that banks tend to perceive as ideal candidates those who have no more than 28% for front-end and no more than 36% for the back-end debt-to-income-ratio.
Aim for a bigger down payment. Mortgage service providers, like your HomePlus Mortgage, recommend that you set aside a 20% (or even more) down payment. This might be a challenging goal to realize, but you will appreciate it when your effort comes into fruition. In addition to mortgage rate advantage, you also do not need to pay for mortgage insurance when you put down this amount. So, be prepared, see to it that you are ready before you even begin hunting for lenders.
The length of stay in the property is also part of the equation. Here’s the thing: It doesn’t make sense to get a new home under a fixed-rate term if you do not plan to live in it for more than a few years. Typically, adjustable-rate mortgages have low initial interest rates; however, it can increase significantly after a specified timeframe. Make sure that you are clear with your goal as to why you are buying a new home – is it for a long term or a short term stay?
Want to learn more about you can get the best deals on mortgage rates, Tucson, AZ? Contact us here at HomePlus Mortgage today.