Rochester Mortgage Rates - When Money Matters

We are always ready to help our clients who are looking for new mortgage or refinancing a current mortgage in Rochester MN

. We will help you to discover best mortgage rates. There are a lot of key criteria for mortgage qualification. Always remember, some criteria are very essential such as Credit Scores, Debt Level, down payments etc. You must be aware about these. You should to know about the rules and process also.

Tip 1: In 2010 real estate market, you need some credit scores to get home loan. But the amount of credit scores totally depends on lender you choose, types of loan, other factors etc. Generally your credit score must be 620 or higher for approving a mortgage loan. Recently Fannie Mae changed the underwriting guidelines of requiring higher credit scores. They raised their minimum higher credit score from 580 to 620. This score is required. Now it means that if any lender wants to sell their mortgage loans to Fannie Mae then they have to use same minimum score as a cutoff point. Most of the mortgage lenders follow the Fannie Mae in requiring 620 for minimum credit score.

Tip2: The lender looks at your monthly income, when you apply for a mortgage loan. Because that lender wants to be clear about debt-to-income ratio. Indeed, the debt-to-income ratio is comparison between your monthly income and the amount which you pay every month towards debts. As an example we can say that if you spend half money of your monthly income for various debts, then your debt-to-income (DTI) ratio will be 50%. At present some lenders pre approve borrowers due to higher ratio of DTI. But if you have a DTI of 30% or less than then it will be very easy to get a home loan in 2010. Always keep it in your mind that, you must try to reduce your debt and it uses up no more than 30% of your monthly income.

Tip3:Most of the people know that the lender will pay for your entire purchase, but you will pay any money as down payment. This fact is known to all. This type of financing helps to sell a lot of mortgage loans. But when housing crash and economic recession occur, then no lender likes to continue or run business with zero down payments strategy. The amount of down payments totally depends on the type of mortgage loan you choose, the lenders underwriting guidelines, and other factors also. As an example if you choose FHA home loan program , then you have to put 3.5% down on mortgage. But if your choice is conventional mortgage loan then perhaps the amount of your down payment will be 10% or more. If you want to qualify for the lowest interest rates of mortgage lenders, in this case you have to put 20% down.

These are very indispensable condition for mortgage loan. Always think carefully about these. You must check your Credit, make a budget before applying for home loan. Indeed, the process of mortgage application is very easy and simple. You also can search online to know the offers of lenders. If you choose the local lenders then it will be the best option. If you have any query or question then you can meet with the person and clear that. They are always around of you for solve your problem. They are ready to help you through the entire process.

by: Brain Hook

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