Getting the best mortgage rate is a dream for most people. Whether you want to purchase that innovation in gadgets, the full entertainment package you’ve always wanted, or that dream home you want to start a family in, getting the best mortgage rate in Tempe requires you taking the time to research.
Most people think that researching online and comparing rates is enough. However, there are a lot of factors that determine the mortgage rate that you will receive. Here are the three most important things to focus on to get the best deal.
Your credit score
This is one of the primary criteria that lending institutions use to determine if you qualify for a loan and the rate you’ll pay for it. There’s an inverse relationship between your credit score and the loan rate. You’re more likely to get a lower loan rate when your credit score is high. Aim to have a credit score of 760 and above to get the best mortgage rate.
The stability of your employment
Lenders would naturally want to know if you’re in the best position to pay them back should the loan be granted. Now is the perfect time to stick to your job, regardless of the type of industry it belongs in. Lenders tend to approve loans and offer the best rates to people who have steady employment for at least the past two years. Jumping from one job to another and a record of dwindling or erratic income won’t do well to your loan application.
Your debt-to-income ratio
You’re also more likely to get the best mortgage rate when you don’t have a lot of debt, when you have the evidence that you’re able to pay your debt, and when it shows in your financial records that you can very well pay a loan with the money that’s left after all deductions.
Getting the best mortgage rate is really more than just going online and comparing rates. You need to focus on these three things to make sure to get the best mortgage rate possible.