When buying a home, one of the most critical factors is determining how much you can borrow through a mortgage. Lenders evaluate multiple financial aspects to assess your borrowing capacity. Here’s what they consider: 1. Income and Debt-to-Income (DTI) RatioLenders assess your income to ensure you can afford monthly mortgage payments. A common guideline is that your total housing costs (including principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income. … [Read more...]
How Obtaining a Mortgage Can Impact Your Credit Score
When considering homeownership, many potential buyers wonder: Will getting a mortgage help my credit score? The answer is yes—if managed correctly. A mortgage is a major financial commitment, but it can also be a powerful tool for building and maintaining strong credit. Here’s how a mortgage can affect your credit score and what you should keep in mind. Building Credit with On-Time Payments One of the most significant factors influencing your credit score is payment history. Mortgage … [Read more...]
What You Can Do Now to Prepare for Mortgage Rate Drops
As we move into the last month of 2024, many potential homebuyers are eagerly awaiting a drop in mortgage rates. With inflation numbers looking promising, there's hope that the Federal Reserve will lower the federal funds rate, which typically drives mortgage rates down as well. If you're planning to buy a home or refinance when rates drop, now is the perfect time to start preparing. Here are five key steps to get ready for the mortgage rate decrease and ensure you’re in the best possible … [Read more...]
Steps to Take Now to Build Your Credit for a Home Purchase Next Year
If you're thinking about buying a new home next year, there's one important factor to consider before you start browsing listings—your credit score. A strong credit score can make a huge difference in the interest rates you will qualify for and can also determine your mortgage approval. Starting the process of improving your credit now gives you a head start, putting you in a better position to achieve your homeownership goals when the time comes. Here are five steps to help you get … [Read more...]
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