Realtor OKC Team Provides Mortgage Loan Tips
There are many factors that go into determining what kind of terms you’ll get when getting a mortgage loan. Want better mortgage rates? Our realtor OKC team is here to share a few of the most important factors that determine your mortgage rates:
1.) Raising Your Credit Score: Your FICO credit score is one of the main criteria that determines your mortgage loan rate. The higher your FICO credit score, the lower your interest rate. In fact, your FICO is so important that to even qualify for a loan with no special circumstances your credit score must be at least 620. Although, our realtor OKC team recommends a score of 760 or above for the best interest rates. There are a few ways to improve this credit score; You can pay down or pay off loans, you can clean up errors on your report, and you can pay past-due collections.
2.) Having Enough Income & Work Stability: Having a stable source of income is an important factor in buying a home. Being able to provide proof for at least 2 years of steady employment is good for getting a good rate. Obviously, long terms of unemployment will have an adverse effect on your mortgage rate. If you’re self-employed things get pretty strict. You’ll likely have to provide your business income with tax returns for the past two years. Additionally, you’ll also have to fill out an IRS form to confirm your earning report is correct.
3.) Increasing The Down Payment: Whenever you take a loan, the interest is calculated based on how risky it is to loan you that money. Anything you can do to make things less risky is a benefit. Putting down a larger down payment reduces how much you owe and makes your loan less risky as a result. A loan with a 5% down payment will probably have a higher interest rate than a loan with a 20% down payment (all other factors being equal).
These are just some of the ways you can get a better deal on your mortgage loans. If you need to know anything else about the home buying or selling process, our realtor OKC team would love to help! If you’re looking for an agent, don’t hesitate to give Thurman Real Estate Team a call at 405-850-9503.