Think getting a great mortgage rate is all about having a perfect credit score? Think again! While credit is important, lenders look at a lot more than just a number. Here’s what REALLY influences your mortgage rate and how you can get the best one.
1. Your Debt-to-Income Ratio Lenders love to see that you’re financially stable. Keep your total debt (including credit cards and car loans) low in comparison to your income. This makes you a less risky borrower.
2. Your Down Payment Size A larger down payment means a smaller loan, which often translates to better rates. Aim for at least 20% to avoid mortgage insurance fees.
3. The Type of Mortgage You Choose Fixed-rate? Variable? Open? Closed? The type of mortgage you select impacts your rate. Fixed rates offer security, while variable rates might save you money if rates drop.
4. Shopping Around Don’t settle for the first mortgage offer you get. Work with a Mortgage Agent who can compare rates from multiple lenders and find you the best deal.
Bottom Line: There’s no one-size-fits-all mortgage. Your best bet? Work with a pro to tailor a mortgage solution that fits your financial goals.
Final Thoughts: Home buying doesn’t have to be overwhelming. By avoiding these mistakes, staying informed, and working with the right professionals, you’ll be holding the keys to your dream home in no time!
At Magnolia Group Realty, we believe every homebuyer deserves expert guidance, from finding the perfect property to securing the right mortgage. With our team of experienced REALTORS® and mortgage expert Charlotte Ferguson, we’re here to make your journey smooth, stress-free, and even fun! Let’s turn your homeownership dreams into reality—reach out today!