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| YourKansasRealEstate.com Hannes Poetter - email - (913) 731 6600 - Miami-County.com |
Hannes Poetter - a passion for real estate |
Hannes Poetter - a passion for real estate |
Hannes Poetter - a passion for real estate |
| (913) 731 6600 |
Criteria to Obtain the Best Mortgage
Rates
No doubt you're aware that mortgage
rates have been low throughout the year.
You've also probably heard that this fall
has seen interest rates dip to record lows
for the modern era. But you may have also
heard that some buyers or refinancing
homeowners are having difficulty obtaining
loans at the lowest advertised rates. The
loan application process is much more
rigorous than in years past and the
processing time for loan applications has
grown.
How can you know whether or not you
realistically qualify for the great rates
being advertised? Remember that lenders
are all about assessing risk - they are
looking for applicants with a very low risk
of defaulting on their loan. There are five
key factors that a mortgage broker will
look at when determining the rate you will
pay on the loan:
Down Payment
Mortgages can still be obtained with low
money down, but having a 20 percent
down payment is the best bet if you hope
to obtain the best interest rates. If you
can afford to make a down payment in
excess of 20 percent on the house, you
will be in an even better position to take
advantage of the lowest mortgage rates.
Assets
Lenders these days are going to be very
exacting when reviewing your financial
records. They will want to verify that you
have the necessary cash to cover the
down payment and closing costs. Banks
will also want to make sure you have
some amount of cash buffer as an
insurance policy of sorts. All of this will
need to be proven with extensive
documentation, and many lenders will
want to review several months' worth of
your account statements. Lenders will also
ask for copies of recent tax returns.
Credit Score
It's no secret that the strength of your
credit score greatly affects the type of loan
you will qualify for. The magic number to
aim for is a FICO score of 700 or better.
Clearing the 700 benchmark will qualify
you for the best mortgage rates, while a
score even just a few points below 700
can cost you as much of a quarter of a
point in interest, which equates to
thousands of dollars over the life of the
loan.
Job Security
Not surprisingly, lenders will want to make
sure that your career situation is stable
enough that you will be able to continue to
make the loan payments on into the
future. Banks will want to see
documentation to indicate how long you
have been with your current employer.
Ideally, you will have two years or more
employed by the same company.
Loan Type & Loan Length
Adjustable mortgages have lower initial
rates overall than fixed-rate loans. FHA
loans will typically have a higher interest
rate, as will jumbo loans (mortgages taken
out on higher-priced homes). As a rule of
thumb, fixed rate loans will have higher
interest rates as the length of the loan
increases, so a 10 year fixed rate loan will
have a lower rate than a 15 year
mortgage, which will in turn be lower than
a 30-year fixed loan. And all mortgage
rates vary from state to state and even
from city to city, so the rates you see
advertised nationally may not be relevant
to your search for the right loan.
Rates
No doubt you're aware that mortgage
rates have been low throughout the year.
You've also probably heard that this fall
has seen interest rates dip to record lows
for the modern era. But you may have also
heard that some buyers or refinancing
homeowners are having difficulty obtaining
loans at the lowest advertised rates. The
loan application process is much more
rigorous than in years past and the
processing time for loan applications has
grown.
How can you know whether or not you
realistically qualify for the great rates
being advertised? Remember that lenders
are all about assessing risk - they are
looking for applicants with a very low risk
of defaulting on their loan. There are five
key factors that a mortgage broker will
look at when determining the rate you will
pay on the loan:
Down Payment
Mortgages can still be obtained with low
money down, but having a 20 percent
down payment is the best bet if you hope
to obtain the best interest rates. If you
can afford to make a down payment in
excess of 20 percent on the house, you
will be in an even better position to take
advantage of the lowest mortgage rates.
Assets
Lenders these days are going to be very
exacting when reviewing your financial
records. They will want to verify that you
have the necessary cash to cover the
down payment and closing costs. Banks
will also want to make sure you have
some amount of cash buffer as an
insurance policy of sorts. All of this will
need to be proven with extensive
documentation, and many lenders will
want to review several months' worth of
your account statements. Lenders will also
ask for copies of recent tax returns.
Credit Score
It's no secret that the strength of your
credit score greatly affects the type of loan
you will qualify for. The magic number to
aim for is a FICO score of 700 or better.
Clearing the 700 benchmark will qualify
you for the best mortgage rates, while a
score even just a few points below 700
can cost you as much of a quarter of a
point in interest, which equates to
thousands of dollars over the life of the
loan.
Job Security
Not surprisingly, lenders will want to make
sure that your career situation is stable
enough that you will be able to continue to
make the loan payments on into the
future. Banks will want to see
documentation to indicate how long you
have been with your current employer.
Ideally, you will have two years or more
employed by the same company.
Loan Type & Loan Length
Adjustable mortgages have lower initial
rates overall than fixed-rate loans. FHA
loans will typically have a higher interest
rate, as will jumbo loans (mortgages taken
out on higher-priced homes). As a rule of
thumb, fixed rate loans will have higher
interest rates as the length of the loan
increases, so a 10 year fixed rate loan will
have a lower rate than a 15 year
mortgage, which will in turn be lower than
a 30-year fixed loan. And all mortgage
rates vary from state to state and even
from city to city, so the rates you see
advertised nationally may not be relevant
to your search for the right loan.
Lenders I have worked with:
Great Southern Bank
First Option Bank
Landmark Bank
Peoples Bank
Pulaski Bank
Vinson Mortgage Group
Kansas State Bank
Citizens State Bank
Great Southern Bank
First Option Bank
Landmark Bank
Peoples Bank
Pulaski Bank
Vinson Mortgage Group
Kansas State Bank
Citizens State Bank
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