Mortgage rates hinge on more than just approval. Being qualified for a loan is not necessarily a good thing if the interest rates are high. This means thousands of extra dollars added to the life of the loan. Individual looking to save a little of that cash need to garner lower rates. This can be done if one properly prepares for an incoming mortgage. But preparing for lower rates takes a lot more than beefing up the credit score.
Interest rates take a whole gamut of percentages into account. By following a few key steps, one can insure a decent rate and monthly payment, but it takes some doing. The final step in the process is always researching interest rates. Different firms offer different rates, and by comparing you can save even more money. This is done with the use of a simple search. So, if you want to know mortgage rates in syracuse ny, just find a good reference site and begin your search.
Credit score is not the only game in town, but it is a valuable player. A FICO credit score is paramount in the approval of a loan and the interest rate attached. Higher scores breed better rates. This is because mortgage lending depends on a tiered system. The higher the tier the better the rates. Individual with a score of 750 get the lowest rates available. Anything under 500 brings no chance of approval. So, the goal should be to pass 500 to insure the loan, and then start climbing the tier to better the rate.
Income, Employment, and Debt
The ability to afford the loan is a huge detail for lenders to look at. High risks get higher rates. This is why a lender will look through your income, your employment, and your debt to assume rating. Individuals with long period of unemployment never look good, so holding a job is a key element. The best rates go to individuals who have held the same job for more than two year, even better rates apply to individuals who got promoted at that same job. Debt-to-Income comes into play when factoring in all the other bills besides mortgage. If you are going to have a hard time paying all your bills with the addition of mortgage payments that does not look good. Having less debt leads to a higher amount of leftover income. This looks good. Having a high income looks better. So, stay employed, do not pay for more than you have, and work on that promotion so you make more money.
Down Payment Plus Cash Reserves
It is ideal to pay at least a 20% down payment on the home you are going to buy. Anything below that is considered high risk. Therefore, it is important to start saving for that 20% now. In addition, cash reserves are also a contributing factor. If you have savings put aside that covers a few months’ payment that makes you look more reliable. Lenders love reliability.