Are you looking for an Arizona home loan? Here’s what you should know before signing on the dotted line.
Know Your Credit Score
It probably goes without saying, but remember that the higher your credit score, the lower your interest rate will be on a mortgage. Typically, a credit score in the 740 range or higher will qualify you for the most appealing rates, which can vary from best to worst by a full 1.5 percent.
Keep Some Savings
Contrary to popular belief, you shouldn’t put your entire savings toward a down payment or closing costs. Lenders actually prefer that you stash some of those funds away should an unexpected expense arise. That way, you’ll be less likely to miss a mortgage payment.
Practice Patience During Underwriting
A lender will review your credit score when you first apply for a mortgage and then again just before closing. If there’s a significant change in your credit history – let’s say you made a large purchase on your credit card – they may choose to delay the closing. That’s why it’s important to stay patient and not charge up a storm or apply for new credit during this time.
Let RedStone Mortgage assist you in finding loan options that meet your individual needs. Call us at 480-759-1500.