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    Criteria to Obtain the Best Mortgage Rates
    No doubt you’re aware that mortgage rates have been low
    throughout the year. You’ve also probably heard that this fall has
    seen interest rates dip to record lows for the modern era. But you
    may have also heard that some buyers or refinancing homeowners
    are having difficulty obtaining loans at the lowest advertised rates.
    The loan application process is much more rigorous than in years
    past and the processing time for loan applications has grown.

    How can you know whether or not you realistically qualify for the
    great rates being advertised? Remember that lenders are all about
    assessing risk – they are looking for applicants with a very low risk
    of defaulting on their loan. There are five key factors that a
    mortgage broker will look at when determining the rate you will
    pay on the loan:

    Down Payment
    Mortgages can still be obtained with low money down, but having
    a 20 percent down payment is the best bet if you hope to obtain
    the best interest rates. If you can afford to make a down payment
    in excess of 20 percent on the house, you will be in an even better
    position to take advantage of the lowest mortgage rates.

    Assets
    Lenders these days are going to be very exacting when reviewing
    your financial records. They will want to verify that you have the
    necessary cash to cover the down payment and closing costs.
    Banks will also want to make sure you have some amount of cash
    buffer as an insurance policy of sorts. All of this will need to be
    proven with extensive documentation, and many lenders will want
    to review several months’ worth of your account statements.
    Lenders will also ask for copies of recent tax returns.

    Credit Score
    It’s no secret that the strength of your credit score greatly affects
    the type of loan you will qualify for. The magic number to aim for is
    a FICO score of 700 or better. Clearing the 700 benchmark will
    qualify you for the best mortgage rates, while a score even just a
    few points below 700 can cost you as much of a quarter of a point
    in interest, which equates to thousands of dollars over the life of
    the loan.

    Job Security
    Not surprisingly, lenders will want to make sure that your career
    situation is stable enough that you will be able to continue to
    make the loan payments on into the future. Banks will want to see
    documentation to indicate how long you have been with your
    current employer. Ideally, you will have two years or more
    employed by the same company.

    Loan Type & Loan Length
    Adjustable mortgages have lower initial rates overall than fixed-
    rate loans. FHA loans will typically have a higher interest rate, as
    will jumbo loans (mortgages taken out on higher-priced homes). As
    a rule of thumb, fixed rate loans will have higher interest rates as
    the length of the loan increases, so a 10 year fixed rate loan will
    have a lower rate than a 15 year mortgage, which will in turn be
    lower than a 30-year fixed loan. And all mortgage rates vary from
    state to state and even from city to city, so the rates you see
    advertised nationally may not be relevant to your search for the
    right loan.
HP–
Kansas Real Estate LLC – Hannes Poetter – President
..
Eastern Kansas Real Estate Source.
Serving Miami County, Linn County, Anderson County, Franklin County, and Johnson County.
Covering Residential, Commercial, and Farm Properties.
Hannes Poetter a Crown Realty Real Estate Agent.
text or call
(913) 731 6600