Getting a good interest rate for your mortgage can mean the difference between being able to afford the home of your dreams, or having a payment that is too high. If you are going to apply for a mortgage in the near future, the following includes tips for getting a better mortgage rate.
Good credit score
Check your credit report before applying for a mortgage. If your score is just average or poor, work at improving it by settling some of your current debts. It is unlikely that you will get a great mortgage rate with a poor credit rating.
20 percent down payment
This is crucial if you are a first time homebuyer; otherwise, you may be able to get away with less if you’re hoping for the best interest rate possible. But putting down at least 20 percent can help to get you the best mortgage rate possible.
Low debt-to-income ratio
Your lender wants to know that the majority of your salary isn’t going towards paying off bills and debt. If it seems like you’re already at the point of having financial difficulties, they may not feel too confident that you can carry a mortgage, too. Therefore, you might not only get a poor rate, but there’s a chance you may not even be approved for a home loan.
Are you having a difficult time getting a good mortgage rate? Various factors, such as a low credit score and an insufficient down payment, can affect how good of a mortgage rate you receive. Paying off debt in order to improve your credit and saving up for a down payment are two great ways to receive a better mortgage rate. If you are having financial troubles and you need cash now, Peachtree Financial Solutions can help if you are receiving annuity payments. You can sell some or all of your future annuity payments and receive a lump sum of cash up front. To learn more about receiving a lump sum of cash for your annuity or structured settlement payments, contact Peachtree Financial Solutions today.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.