Mortgage rates, San antonio, TX, are volatile; that is, they keep on changing from time to time. This is one of the reasons why a number of homebuyers consider searching for the best mortgage deals available a challenging task. However, if you are prepared and armed with the right information, finding the best mortgage deal can become a lot easier.
In this post, we are sharing some important factors that are affecting the mortgage rate deals you get.
Credit score. Credit scores are used by lenders in measuring how responsible you are in your finances. That is, the higher your score, the better are your chances to get the best mortgage rates, San antonio, TX. Improving your credit score may take some time, but it is worth the effort when you save 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.
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.
Duration of stay. 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 live in it for more than a few years. Usually, Adjustable-rate mortgages have low initial interest rates but can increase significantly after a specified timeframe. Make sure that you are clear with your goal on why you are buying a new home – is it for a long term or a short term stay?
Debt-to-income ratio. Figure out how healthy your finances are when it comes to debt-to-income ratio. Debt-to-income-ratio has two faces. One is the back-end ratio, which calculates the total of all 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). Historical data can tell that banks tend to view as ideal prospects those who have no more than 28% for front-end and no more than 36% for the back-end debt-to-income-ratio.
Want to learn more on how you can get the best deals on mortgage rates, San antonio, TX? Contact us here at HomePlus Mortgage today.
