30 year fixed rate mortgages are amongst the most popular mortgage products in the country. Borrowers who choose a 30 year fixed rate mortgage know that they are going to have consistent payments each and every month. While the mortgage rates for a 30 year fixed rate mortgage may be higher than a 20 or 15 year fixed mortgage, the length of a 30 year loan will make for lower monthly payments.
In order to qualify for a 30 year fixed rate mortgage a borrower must prove his/her creditworthiness to the lender. This can be a difficult process for some but there a certain things that can be done to make this easier.
• Documentation- Most, if not all, lenders will want a borrower to document their financial situation. This usually includes copies of paycheck stubs, tax returns, statements from bank accounts, as well as other documents. If a borrower is self employed then they may be asked to show a profit-and-loss statement.
• Credit Score- This is one of the most important aspects of establishing trust with a lender. If you have a good credit score then a lender will know that you have been responsible with paying past debts such as car payments, prior mortgages, and credit cards. Often the higher credit score you have the better mortgage rates you will be able to get. Borrowers with lower credit scores may struggle to qualify for a mortgages, and if they do will not get the lowest mortgage rates.
• Debt-to-Income Ratio- Many believe that a high income will automatically qualify you for a loan. That is not always the case. A more important statistic is your debt-to-income ratio. This proves to lenders that a borrower has been responsible, by not accruing more debt than they are able to payoff.
• Down Payment- Almost all mortgages, if not all, require a down payment. The amount of the down payment is usually a certain percentage of the entire home loan that must be paid upfront. A down payment proves to the lender that the borrower is committed to purchasing the home.
Total Mortgage offers some of the lowest current mortgage rates on 30 year fixed rate mortgages. Currently a 30 year fixed conventional mortgage at Total Mortgage has a 4.125% rate and a 4.323% APR.
To learn more about 30 year fixed mortgages call one of our licensed mortgage professionals at 877-868-2503.
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