I often see posts on blogs where someone is asking "What's my Rate". They will usually list their credit score, how much they make and what their monthly debt is, and are looking for a "Ball Park" for what rate they would qualify for... This is not a good idea, and you certainly shouldn't use an internet blog to find out what you qualify for.. you're setting yourself up for a HUGE disappointment. Think of it this way.. if you were a jeweler and I called you on the phone and asked you how much my diamond was worth, you would laugh at me. You cannot tell me how much my diamond is worth without seeing it, holding it, inspecting it, testing it... no way, no how... We have all seen on the front page of Yahoo, where off to the right there's an ad that says, "Refinance now at 2.75%"... and we think wow.. that's a low rate.. you click on it, put in your information, and now all of a sudden the rate isn't 2.75%, its 4.25%. So what determines your rate...
1) Credit scores
2) How much are you putting down
3) Single family home, condo, mobile home
4) First time home buyer or not?
5) What state are you purchasing in?
6) What type of income do you make, IE, Salary, hourly, commission, Self employed?
7) If any of your income is commission or overtime, you need to show that it's likely to continue to be able to use it within your qualifying ratios.
8) How long have you had credit, and what type of credit do you have, IE credit cards, car loans, student loans, and payday loans, secondary finance company loan's, Fingerhut or department store credit cards.
9) Have you had a Foreclosure, short sale, deed in lieu, or Bankruptcy?
10) What is your combined monthly debt vs. your monthly income?
11) Do you rent now or do you live with someone and you don't pay rent?
12) How many years do you want to pay for... 15 years, 20 years, 30 years, 40 years
As you can see there is so much more than your credit score and how much you make that determines your eligibility or what rate you qualify for. Best advice I can give anyone is to contact a local mortgage broker, not one of those BIG BANKS... big banks are very good at taking and holding your money, such as savings, checking and investment accounts, however they usually fail miserably when it come to lending. The turn time, or the time it takes to close on a mortgage, is usually 2 to 3 times longer with a big bank vs. a mortgage broker. Mortgage brokers are licensed, bonded, insured, and trained. All of their information is accessible via a national government website so you can see their qualifications. Using a broker get's you exposed to hundreds of lenders with numerous different lending programs. Going to a big bank, you get one lender, and one lending program. Trust the professionals and let them get you pre approved, and get you something in writing. This way, there are no hidden costs, fees, or surprises in the end. WilliamAcres.com