Are you one of the would-be home buyers looking for the best home loan rate? For every homeowner, it is essential to check the annual interest rate that you will be paying on the home loan. If you get a house loan with affordable interest rate, you can save money per month. Hence, you can save throughout your tenure. However, first-time buyers need extra push to find the best mortgage rates.
You can assure that you are well-qualified when you get the best home loan rates possible. Now, the credit score is one of the common drills but there are other factors to review. Since buying a home has been a crucial step in everyone’s life, you should consider certain things before haphazardly buying a mortgage. Following are the aspects that everyone searching for the best mortgage rates in Houston, TX must remember.
Prove Stable Income and Employment
The loan officers always prefer candidates who have a steady income for at least 2 years. If you are unemployed for a long period or have disruptive income pattern, you can suffer a lot. It is essential to show employment history with the same company for 24 months. The conventional loan officers do not favor the self-employed people. If you are a freelancer, you can opt for bank statement loans, instead. It is necessary to document tax returns for the last 2 years.
Check Credit Score Always
If your focus is on getting a home mortgage, the credit score plays a huge role. When the scores are over 700, you are in the safe zone. If you are not a war veteran, you may have problems when the score is around 500. Even, FHA loan would still remain a dream forever. That’s why prevention is better than cure and you should work upon improving the score. People with credit score lower than 500 should start to pay bills on time. When there is less revolving credit card debt, the score will go up. Additionally, the score can go downhill if there is too much new credit. Hence, going for lots of credit right before the house loan is never a good idea.
Consider the House Location
The expensive locations in Houston always qualify for super conforming loans. For such loans, the mortgage can go up to $636,150 for only a single unit. However, this rate is cheaper than jumbo loans. If you are going to purchase a property in rural area, there will be a unique impact on mortgage options. It is better to shop around to find the best rate.
Get Information about Closing Costs
The lender is responsible for charging closing costs. The mortgage rate is not affected and the costs are around 3% of the buying price. When you finalize or close the purchase, you need to pay the amount. Now, the charge compromises of appraisal fees, title insurance, and processing costs.
Generally, people choosing a 15-year loan, having around 800 credit score, or putting 20% for down payment can get the best mortgage rates in Texas. You can seek help from the professional lenders to find the best loan program.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.