Client question: What are a couple of quick tips for getting the best home loan?
SCUDO Answer:
Tip #1 Knowing your debt to income ratio can significantly impact not only your interest rate, but your ability to qualify for a home mortgage. Depending on the type of loan (i.e. conventional vs FHA), the rate most Lenders look for is 28% meaning, your monthly mortgage payment should not exceed 28% of your gross monthly income.
Tip #2 Shop around. We recommend reaching out to at least 3 different Lenders in regards to their rates, and what impacts their rates (i.e. income, down payment, credit score, etc).
Tip #3 Know your credit score, and ask your Lender if they can offer a strategy if it’s lower than you’d prefer.
Tip #4 Put down as much as you can comfortably afford. The less risk you provide to the Lender, the more favorable their loan terms will be.
This list is in no way comprehensive, but provides a good starting point! Want information specific to your needs? Contact SCUDO today!