Anxious home buyers who have successfully negotiated a tough housing market often wonder how long it will take to get low rate mortgages. Once they have found their dream home and managed to put in the winning bid on the property, they need to work with direct mortgage lenders to find a way to finance their futures.
Many direct mortgage lenders require buyers to have a credit score of about 680 before they will finance low interest home loans, but many report that a higher down payment from a home buyer may allow them to finance a higher amount at a lower rate. Some local mortgage lenders may be able to work with credit that needs a little bit of improvement.
In general, people who commit to a mortgage should make about three times the cost of their monthly mortgage bill: unforeseen expenses do arise, and property taxes and repairs can potentially cause problems for the unprepared home owner. Most banks and lenders do require proof on income in order to be sure that they are making a secured loan.
Usually, a down payment is at least 3.5% of the total cost of the home. Experts recommend that home buyers save some money to pay inspection fees, realtors’ fees, and other costs associated with closing on a home. Also, changing jobs during the process of obtaining a mortgage can cause costly delays that may prevent the loan from being approved.
Rates for home mortgages can vary, so home buyers are strongly advised to commit to a mortgage once they are sure that they are getting a good rate. The real estate market has been on an upswing for a few years which is usually an indication of lower mortgage rates for interested home buyers, but in a market that can change overnight, lower mortgage rates should be locked in as soon as possible.