14 Oct Factors That Impact Your Mortgage Rate
Factors That Impact Your Mortgage Rate
Your loan type/product.
This is a crucial decision and picking the right loan type is important. If you’re shopping for a home, you’ve probably already met with a lender and obtained a pre-approval letter based on your credit history, income, etc. If you have not and need a recommendation on a mortgage lender, please let us know. Your lender has probably explained to you that mortgage rates fluctuate daily and from product to product. If not, make sure you ask them for an explanation of what changing interest rates can mean for you.
Your employment history.
When it comes to securing a loan, the stability of your income does matter. To qualify for a conventional mortgage loan, you will probably be required to have at least two years of continuous employment history. This length of time applies to self-employed borrowers as well, though they might face additional scrutiny in other areas.
Your financial situation.
Obviously so much depends on your financial situation to determine if and how much you are approved for a home loan. It is important to learn your current credit score, the amount you’ll need to borrow, and the amount you have available for down payment.
Your local market.
Rates differ depending on where you live so it is important to see which lenders service your area and the current rate trends they are seeing. And if you are quoted a low rate, remember to lock in on it if you are buying very soon.