Ask SCUDO! “What are a couple quick tips for getting the best home loan?”
Client question: What are a couple of quick tips for getting the best home loan?
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.