Whenever you are looking to get financing for a home, you will often need to work with a mortgage lender. MN Mortgage Guy is Rosemount home mortgage lender. With a variety of options available, you will be able to get the funding you need to purchase a new home. Anytime you are looking to get a mortgage you will need to meet certain qualifications. These qualifications include; the down payment, credit score, and your income. Meeting these qualification criteria will ensure that you can get a mortgage.
The first thing that a mortgage lender will require is a down payment. You will often need to put some money down in order to get financing for a home. In most cases, you will need to put 20% down. While this is the standard amount, you can also put down more money in order to lower your monthly mortgage payments. There are also lending options that enable you to get a mortgage with only 10% down and even 3.5%. Whenever you get a mortgage, you will need to keep in mind the required down payment.
Another thing that will be evaluated by lenders and you will need to qualify for a mortgage is your credit score. Most lenders will require that you have a certain credit score in order to get a mortgage. Many lenders will require you to have a credit score that is at least 620. In order to get the best rates, you will need to have a credit score that is 700 or higher. However, certain programs such as FHA only require you to have a credit score of only 580.
Whenever you are applying for a Rosemount mortgage loan, lenders will also review your income. They will often require that you make a certain income in order to qualify for a mortgage; often no less than four times the mortgage payment. For example, if you make $4,000 per month, the mortgage payment must be no more than $1,000 per month. Some lenders may want your mortgage to be one fifth of your income. In most cases, the mortgage will have to be within your debt to income ratio. Lenders require that your debt be no more than 35% of your income so the mortgage payment will have to be within this range to qualify for a mortgage.
Based on your credit score, you will get an interest rate for your mortgage. The interest rate will be an additional percentage that you pay along with the loan balance. This will be very critical because it will determine your mortgage payment and what you can realistically afford. If you get a low rate, you will be able to get more funding and afford a more expensive house.
Need help to prequalify for a mortgage loan? We're here to help! Ask us about a Rosemount mortgage loan.