| Getting a mortgage is a lot more complicated than just getting people to quote you rates. In fact, if someone is not taking a full application from you BEFORE they quote you rates and terms, they are either purposely misleading you or they really don’t understand the mortgage business. Many things are factored into the equation by lenders when they are qualifying you. Credit scores, debt-to-income ratios, loan-to-value ratios, your ability to document enough income, etc., all play an integral part in the qualification process. Without knowing everything about you and your individual situation, no one can give you an accurate quote regarding rates on specific loan programs.
Loaning money is all about assessing risk, and in this market every single lender is fearful of losing on their investments. The greater the perceived risk that a lender has to take when making a loan, the higher the interest rate will be as compensation for taking that risk. On the norm, a person who puts a 20% down payment on a home purchase (or has at least 20% equity in his property when refinancing) will have a lower interest rate than a client who finances his house at 97% loan-to-value. Some lenders give the absolute best rates to borrowers whose properties have a loan-to-value of 70% or less. Any loan amount above this ratio may result in slightly higher rates for certain scenarios. Good credit scores will carry lower interest rates as well, so be mindful of your credit history. In today’s tight credit market even a score slightly under 740 may incur lender price adjustments for the worse. Likewise, lenders give the best rates and terms to borrowers who can document enough income and assets to qualify. Stated income loans are not available at any desirable rate at this point in time. Please call me at (877) PAUL WICKSTROM so we can discuss getting the best program for your own unique situation! |
Paul Wickstrom
