When you decide to go hunting for a home, the first thought that crosses your mind is; “Will I get approved for a mortgage payment”?
Luckily, there are different types of home loans, so every homebuyer will find something that works for them.
Down Payment Size- If you are able to put a larger down payment, like 20 %, it will be easier to get the loan, and you will be offered a better interest rate. Of course, if you want to put down less, it is still possible with different types of loans.
Credit History- Your credit history is very important when applying. Lenders look at FICO scores to find out what you are eligible for, and what interest rate they can offer to you.
Work History- Lenders need to check if your job is stable, to make sure you will be able to make monthly payments.
Debt-To-Income Ratio- Lenders check your debt, and they want to make sure that less than 43% of your incomes go toward your debt. Before applying , make sure you are not maxed out on your credit cards.
Type of Loans- Before making any decision, it is important to ask your lender about all the options you have. Choose the one that works best for you.
Hope we answered some of your questions!
If you need to sell your Rockford house fast, give us a call at 847-242-2212.