Mortgage Tips for Home Buyers. Are you sitting on the sidelines waiting for the best time to refinance or get a mortgage loan? With the FHA introducing the new guidelines, getting a mortgage loan for the first time home buyers will become bit too expensive. With a stellar credit rating, persistence and shopping skills, it might become possible to snag the best mortgage deal in the market. So, if you’re someone who is trying hard to strike a deal in the market, here are some tips that you might consider apart from checking different mortgage forums.
Stop delaying and go for a refinance: If you haven’t refinanced your mortgage loan as you’ve been waiting for a lower interest rate, you should do it immediately. As the present mortgage rates are at their record low levels, you should immediately leverage the low rates so as to help you save money. During the first few months of 2013, the mortgage rates are supposed to stay low and this might increase in the next few months.
Ensure that you have a stellar credit rating: The credit standard remains tight throughout 2013 and therefore before you approach a mortgage lender, you have to ensure checking your credit score and improving it to at least 720 so that the lenders feel that you’re able to manage the monthly mortgage payments with ease. With a poor credit score, you might be subject to high interest rates that can become un affordable on your part.
Lower your DTI ratio: The DTI ratio or the debt-to-income ratio is another ratio that is taken into account by the mortgage lenders before lending you a mortgage loan. You should take steps to pay off your debts so that your DTI ratio is reduced and your mortgage lender lends you a loan with ease. Unless you take the required steps to lower the DTI ratio, you won’t be able to get a mortgage loan at an affordable rate.
Shopping is the key: While you choose to take out a mortgage loan in 2013, you need to shop around among multiple lenders. As there are too many lenders that are trying to lend you their mortgage loans and services, you require choosing the one that offers the lowest mortgage rates, the lowest closing costs and affordable monthly payments throughout the term of the loan.
Pay down the exact amount: You also require paying down the exact amount towards the mortgage loan so as to avoid paying the mortgage insurance payments. You just have to save enough money so that you’re able to pay down at least 20% of the loan amount to the mortgage lender. When you fail to pay down the exact amount to the lender, you might have to pay the PMIs that will unnecessarily increase the monthly mortgage payments.
Therefore, when you’re wondering about the prospects of getting a mortgage loan in 2013, you should follow the above mentioned tips. Manage your finances at the same time and repay the loan on time so as to help yourself avoid a probable hit on your credit score.
When you have your mortgage in place you will need a professional home inspector. Choose an experienced and knowledgeable inspector to ensure your investment is protected from un-wanted surprises or expenses. When searching in the Barrie area call Roger Frost, The Barrie Home Inspector.