Special article brought to you by Econ Mortgage
Securing a low interest rate on your mortgage depends largely on the market rates, but there are things you can do to help you qualify for the best rates on your next mortgage loan.
TALK TO A PRO
Talk to a mortgage loan officer to check on current rates. If you’re refinancing an existing loan, you should know the rate on your loan so you can compare and know if you can save by refinancing at today’s rate.
KNOW YOUR SCORE
Your credit score is one of the most important factors that lenders use to determine your creditworthiness and the rate you’ll pay. A higher credit score translates into a better rate on your loan. A score over 740 is generally considered very good. A score between 670 and 739 is good. 580 to 669 is fair, and anything below 580 is considered poor credit.
PAY OFF DEBT
Reducing your personal debt will help you in a few different ways. A lower outstanding balance on your accounts will help raise your credit score. It will also reduce your debt to income ratio, which is part of what lenders consider when deciding if you qualify for a loan, as well as the amount they will approve.
SAVE FOR A DOWN PAYMENT
It’s possible to get into a home without a large down payment, or in some cases, without a down payment at all. However, a large down payment can open up your options for different types of loans and can also eliminate the need to pay private mortgage insurance (PMI), which is usually required if you owe more than 80% of the home’s value on your mortgage. Even if you don’t end up needing the money for a down payment, you can use that money to buy new furniture, big screen TV, or other finishing touches on your new home versus having to finance it later.
These suggestions will help you improve your financial standing as you get ready to apply for a mortgage loan, but that doesn’t mean you can’t qualify without everything being perfect. If you are ready to buy a home or want to refinance, talk to a loan specialist who can help you explore your options based on your current situation.
Who is Econ Mortgage?
At Econ Mortgage, we keep our overhead low and use technology to streamline the mortgage process. We make less profit on each loan, so we can pass the savings on to our clients. Our clients keep coming back because they know we’ll take care of them and get them the best possible rate at a competitive price. Call us at (385) 258-3588 or visit EconMortgage.com.