As house prices continue to climb, people are all looking for ways to be able to afford more home. They all are calling other lenders and banks just doing anything they can to see if they can get a higher pre-approval.The first thing you want to understand in order to find more money in a deal is the places the mortgage company sees your money going out.
- Car Payments
- Student Loan Payments
- Taxes (They are based on each town and a by choosing the lower taxed town you can afford more)
- Interest Rate
This is a small list of some of the items that will change how much you can qualify for. These each should be a subject with your mortgage professional talking about whether to pay things down or not. The taxes always are a choice of if you are OK with the town that has lower taxes or not. The one that we can not control is the interest rate. The good news is that interest rates are dropping and at historic lows.
If you have a pre-approval in place but have not checked in for more than a few weeks with your mortgage pro now may be the time to do so. In a competitive world of pricing being able to have the proper budget for your needs can ensure you get “The One”. One other that can affect your interest rates is your credit score. No matter who we are we all need to always work to improve and maintain a great credit score.
If you are in need of help getting a better understanding of all this please reach out to us and we would be happy to have one of our Move Mentors help. There are programs that can run scenarios and look at what makes the most sense to maximize your score and ability to get great interest rates. If you need a referral for a great mortgage professional we have some great contacts on hand. We hope you enjoyed this blog and if you have any questions or comments below. Make sure to jump over and check out our Facebook Group and Podcast “Homeownership”.