Not many people begin the home buying process by shopping for a mortgage, but there's a huge incentive for you to consider it. For starters, getting the right loan could give you a buying edge in today's St Kitts real estate arena. It's also your best chance to control your home ownership costs. As it turns out, there's a few steps you could take in order to secure the best rate.
Besides affecting your interest rate, your credit score could also impact your ability to qualify for a home loan. The ball is in your court here, so do whatever's necessary to improve your score. This might be as simple as paying your bills on time and avoiding late payments. Still, there's no harm in spending some time optimizing your score before you can start applying.
There's nothing wrong with consulting several lenders to see what each of them has to offer. Not all of them use the same evaluation approach, so it's not unusual for loans to vary in terms of rates and the fees involved. So make sure to obtain quotes from several sources; the time you spend here could pay off massively in the long run.
The lower the outstanding debt in your name, the better off you'll be when it comes to servicing your mortgage. This sounds obvious, but it's part of what lenders will be interested in when reviewing your application. So use this chance to take care of other unsettled dues you might have (loans and credit cards). The goal here is to reduce your debt-to-income ratio to less than 36%.
Paying for points is a smart way to lower the interest rate of a mortgage over its lifetime. In most cases, a single point is priced at 1% of the loan's value, and has the effect of slashing the attached rate by 0.13%. As such, points are best suited for long term mortgages that remain unchanged for the entire borrowing period. That aside, make sure to do your homework properly before choosing this route.
Contrary to popular opinion, mortgages with short tenures aren't usually priced higher than their long-term alternatives. While it's true that the former carry higher monthly installments, it's worth clarifying that rates always vary in proportion to the repayment term. So don't let a 15-year loan scare you; as long as you can keep up with the repayments, you'll end up paying less in interest than you would with a 30-year mortgage.
The larger the amount you've saved up for the deposit, the higher your initial equity will be. This means you'll pose less risk to lenders, and will thus be more likely to secure a low-interest mortgage. Putting more money down could also eliminate the need for you to pay for a mortgage insurance policy.
How frustrating would it be if the rate you've just been quoted happened to climb between now and the time of closing? No need to state the obvious, but what's important to note is that rates can change daily, at times hourly. The only way to guarantee that yours will stick is to have it locked by your lender. Without a rate lock, it's just a quote and nothing more.
Besides affecting your interest rate, your credit score could also impact your ability to qualify for a home loan. The ball is in your court here, so do whatever's necessary to improve your score. This might be as simple as paying your bills on time and avoiding late payments. Still, there's no harm in spending some time optimizing your score before you can start applying.
There's nothing wrong with consulting several lenders to see what each of them has to offer. Not all of them use the same evaluation approach, so it's not unusual for loans to vary in terms of rates and the fees involved. So make sure to obtain quotes from several sources; the time you spend here could pay off massively in the long run.
The lower the outstanding debt in your name, the better off you'll be when it comes to servicing your mortgage. This sounds obvious, but it's part of what lenders will be interested in when reviewing your application. So use this chance to take care of other unsettled dues you might have (loans and credit cards). The goal here is to reduce your debt-to-income ratio to less than 36%.
Paying for points is a smart way to lower the interest rate of a mortgage over its lifetime. In most cases, a single point is priced at 1% of the loan's value, and has the effect of slashing the attached rate by 0.13%. As such, points are best suited for long term mortgages that remain unchanged for the entire borrowing period. That aside, make sure to do your homework properly before choosing this route.
Contrary to popular opinion, mortgages with short tenures aren't usually priced higher than their long-term alternatives. While it's true that the former carry higher monthly installments, it's worth clarifying that rates always vary in proportion to the repayment term. So don't let a 15-year loan scare you; as long as you can keep up with the repayments, you'll end up paying less in interest than you would with a 30-year mortgage.
The larger the amount you've saved up for the deposit, the higher your initial equity will be. This means you'll pose less risk to lenders, and will thus be more likely to secure a low-interest mortgage. Putting more money down could also eliminate the need for you to pay for a mortgage insurance policy.
How frustrating would it be if the rate you've just been quoted happened to climb between now and the time of closing? No need to state the obvious, but what's important to note is that rates can change daily, at times hourly. The only way to guarantee that yours will stick is to have it locked by your lender. Without a rate lock, it's just a quote and nothing more.
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Get a summary of the things to consider before buying St Kitts real estate and more information about an experienced Realtor at http://www.repropertiescaribbean.com/passport-program now.