Have a Lot of Mortgage-Related Questions? Let This Expert Answer Them All For You
While getting to own a home is a dream for many people, the actual process of buying a property can easily turn into a nightmare. After all, there are many considerations that one needs to pay attention to make the transaction go smoothly. Luckily, loan officer Gina Nolte is generous enough to provide answers to the most common queries homebuyers have about the mortgage process.
On Credit Scores
By now, people already know the importance of having a good credit score when it comes to borrowing. That said Nolte clarifies that lenders would usually consider an individual’s middle credit score, which is the middle number when a person’s score is pulled from three credit.
For loans below $484, 350, Nolte said that a credit score of 740 and above will be good to have. She also noted that a slightly lower middle score of 720 is still good with a 680 middle score being average. A score lower than this won’t automatically mean that one would be denied a mortgage though.
On Monthly Premiums
One concern that people have when applying for a mortgage is how much their monthly payment would end up being. According to Nolte, nailing this exact amount can be tough as it depends on a variety of factors such as a person’s down payment, interest rate, and the loan program they’re applying for.
She also points out the advantage of speaking with a loan officer and letting them run one’s credit to get a better estimate. In general, though, a loan officer would be able to give people a range.
On Down Payments
When it comes to determining how much money to put up for a down payment, borrowers are recommended to have a loan-to-value ratio of about 80%. This would allow an individual to not pay private mortgage insurance. In action, following this rule would mean making a down payment of $20,000 on a $100,000 home leaving one to borrow the remaining $80,000.
One way people can lower their interest rate or shorten the term of their mortgage is through refinancing. This said it’s important to know that one can start refinancing their home after six months and a day since they purchased a house. Doing this would not only lower one’s interest rate but also get rid of mortgage insurance.
On Having Multiple Mortgages
A person may end up having multiple mortgages when they decide to co-sign for other people such as a relative in their own house. This can be undone when the owner of the mortgage refinances their loan and one’s name gets taken off of it.
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