Are you looking to purchase a new home? Maybe you are wondering if refinancing your current mortgage is a good idea? If so, you will want to do your homework to make sure you are getting the best rate you can for your situation. There are various factors that play into the lenders decision on whether they will make you a loan and what rate they are willing to give you Aussie Broker.
Your Credit Score
If you don’t know what your credit score is, you will want to find out. There are online services where you can find out what your credit score is. The better your credit score, the better chance you have of getting a good home loan rate. If your credit score is not where it needs to be to get the loan or to get a good rate, you may want to do some credit repair prior to getting your loan. There are many credit repair companies that can guide you as to what how you can best clean up your credit and raise your credit score.
The lender is going to want to verify that your income is sufficient to make the monthly payment. They will look at your sources of income as well as how long you have been getting the income to decide if they can rely on that income for the loan payment. If you are self employed, they will be looking for a longer track record than if you are employed and receive a paycheck. The information the lender will want to see includes: tax returns, pay stubs, bank statements
Debts and Obligations
The lender will look at what your current debts and obligations are. They want to verify that with the income you have coming in, you can comfortably afford their payment on top of the other debts. You will want to clean up any small debts or collection accounts prior to applying for your loan. This will help your debt ratio as well as your credit.
Once you have put your information together for the above areas, you can shop around to see you can give you the best home loan rate for your situation. There are companies who specialize in taking your application and placing with the right lender who can best service you. This can be a very good way to go because you don’t want to get too many lenders pulling your credit as this can lower your credit score and ultimately hurt the rate that you qualify for on your home loan.