Cory Ruppersberger is a successful business entrepreneur and owner of a very successful mortgage lending company in Columbia MD called Best Loan Choice, Inc. and has helped several people to achieve their dreams of being a homeowner.
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2. Effective Tips for Home Buying
Purchasing a home may be the single biggest
financial transaction that you will ever make. That’s
why doing it right the first time is very important.
There are specific credit qualifications required in a
home loan transaction. Obtaining knowledge on this
subject can help you start realizing your homeowner
dreams with a fast and easy process.
Here are some no-hassle home buying tips shared by
Cory Ruppersberger owner of Best Loan Choice, Inc.,
a mortgage lending company in Columbia MD.
3. Tips for Home Buying
• Strengthen your credit
• Get a Pre-approved loan
• Shop for your mortgage
• Explore debt to income ratio qualifications
• First-time buyers programs
4. Strengthen Your Credit
A good FICO score will help you qualify for the better
interest rate. A FICO score of 740 or higher will allow
you to obtain the best interest rate and help you avoid
paying costly discount points and costly “out of
pocket” closing costs. By lowering your interest rate,
you will save money over the life of the loan.
For preliminary credit check, it’s always smart to
obtain a free online credit report before you submit
your loan application to any lender. Also, you should
consider paying off credit cards and resolving any
credit disputes. This process alone could increase your
credit score by as much as 25%!
5. Get A Pre-approved Loan
Before hiring a real estate agent, you should apply
to several lenders within a two week period so that
the excessive inquiries will not damage your credit
score. Understanding your monthly payment
terms will help you develop a personal on budget
based on how much of housing payment you can
afford.
Without a pre-approval letter, most buyer won’t
consider an offer on a property. Furthermore,
your real estate agent may be reluctant to show
you homes without confirming your loan
qualification.
6. Shop For Your Mortgage
Many people find shopping for a mortgage to be a
strenuous process. Nevertheless, it is a necessary
component to determining your housing budget.
There are many different loan types and terms based
on the client’s ability to pay.
Fixed rate terms can be 30, 20, or 15 years. There is
also a range of down payment options ranging from
“no money down” to 20% down options (20% down
allows borrowers to avoid mortgage insurance).
7. Explore Debt To Income Ratio Qualifications
Lenders mostly use “28 and 45” ratio to determine if
you qualify for a loan. Your intended housing expenses
must cover 28% of your gross income before you pay
taxes. Monthly expenditures on your outstanding
debts, when combined with your housing expenses,
must not exceed 45% of your gross income.
However, FHA will allow ratios up to 55% but will
require a higher amount of mortgage insurance to be
paid on the loan.
8. First-time Buyers Programs
If you qualify as these have much lower down
payment requirements. These programs are offered
by various states and local governments. You can ask
your broker or human resource department for
specifics regarding borrowing those assets. The United
States Department of Agriculture also offers a $0 down
loan in areas that are consider rural.
The Veterans Administration also offers a similar $0
down program to veterans of the United States
Military.
