Before deciding to apply for a mortgage, you should know what your current financial situation is like. Make sure that your home expenses are less than 28% of your gross monthly income. Different lenders will require different credit scores, so make sure to check them out before you apply for a mortgage. You can improve your credit score by paying off debt and aging your credit before applying. A conventional mortgage will require a high credit score, so start agespending debt and pay down the amount you owe on credit cards.
You can also apply for a USDA loan, which helps rural home buyers qualify for no down payment. Rocket Mortgage services nearly all loans, and they can even help you get a mortgage if you’re in a disadvantaged neighborhood. Another option is a 15-year fixed-rate loan, which will pay off your mortgage in 15 years. The monthly payment you make will not change, but the percentage you pay toward the principal will increase.
Mortgage rates can be confusing. Rates vary depending on your location and credit. However, you should know that there are no geographic restrictions on how much you can borrow. You can use the online tools to compare rates and lock-in a rate. You can also call customer service representatives at 15-hour shifts to ask questions about your situation. Most lenders offer the same rates for people with similar financial circumstances. A good place to start is the National Association of Home Builders website.