Getting a mortgage can be stressful for most people – more so if you’re a first-time home buyer. With all the paper works you need to take care of plus the home loan process being a complicated one, it can be one nerve-racking experience.
But, it doesn’t have to.
The following tips will help you through your home loan journey. Make sure to take down some notes as these are some of the best advice you can get to secure Mortgage Loans San Antonio this year.
Table of Contents
Know Your Credit History And Improve Your Credit Score
Your FICO Score and Credit history are some of the things your lender will check during the application process. So, to avoid surprise errors, check your report and watch out for errors. Aim to improve your score to qualify for better home loan programs.
Save a larger down payment
Aim for a bigger deposit for the mortgage. You’ll get to snag lower interest rates by paying a larger down payment. If you can afford it, at pay at least 20% down payment so you won’t have to pay for Private Mortgage Insurance.
Good Read: The Pros And Cons Of PMI
Explore Your Home Loan Options
There are different mortgage options out there that varies in requirements, pros, and cons. Consider other options instead of sticking to a single mortgage. See which one will fit your needs and situation better, and you would rather have an adjustable-rate or fixed-rate mortgage.
Find A Good Mortgage Broker
Some may think that working a mortgage broker is just another expense added to your tab. However, their skills, knowledge, and connections make them an excellent partner in crime in getting the best mortgage deals you may never get by getting a mortgage on your own.
Aim For A Good DTI Ratio
Your Debt-To-Income Ratio is another factor that can either make or break your chances of getting approved for a mortgage. Most lenders will require a DTI ratio of 43%, but it will be best to aim for one not higher than 36%. With a low DTI ratio, you’re more likely to secure a mortgage and can afford your monthly payments.
Check If You’re Eligible for VA or USDA Loans
For people who qualify for a VA or USDA Loan, you don’t need to put any down payment at all. This is a privilege you must take advantage of if you qualify for such a loan.
Good Read: 5 mortgages that require no down payment or a small one
Delay Significant Buys And New Credit Accounts
It is best to avoid expensive purchases and to open new credit accounts as this can add an outstanding dent to your history and debt. Wait for your mortgage to close before jumping into new credits.
Compare Lenders And Mortgage Rates
Not all lenders are the same, and so are their rates. You have the right to shop for lenders and to compare their prices before saying yes and signing an agreement. Have at least three mortgage quotes and examine their pros and cons before settling on one.
Have Your Financial Documents At Hand
Having your documents ready will save you time and effort during a mortgage application. All tax documents and your income will be verified, so it would be wise to have them ready beforehand.