Many potential borrowers in Rochester Hills, Michigan, get one mortgage interest rate quote from a bank and accept it without shopping around for better rates. Gem Home Loans can do the legwork for you to help you save thousands of dollars over the life of your loan.
At Gem Home Loans, headquartered in Rochester Hills, MI, we offer a variety of lending products and are confident that one will work for your home financing needs. We work as mortgage brokers and are partnered with dozens of investors to find you the best rates, costs, and programs.
Our specialists can help you explore a wide range of options. Through prequalification, we can quickly assess your credit based on your assets, debts, past credit use, and income, and tell you which choices are available. After this assessment, we can outline how much you would qualify to borrow and assist you with the eligibility requirements for these and other home loan programs.
When it comes to buying a home, you will need to shop for a mortgage. The mortgage interest rate can make or break the affordability of your home, so you should work with Gem Home Loans to shop around for the best rates. Here are a few things you should do before you start.
Clean up your credit
It’s important to keep in mind that the interest rate you get on your mortgage will be directly influenced by your credit score. Before shopping for a mortgage, always pay your bills by their due date. About 35% of your credit score is based on your repayment habits.
Don’t close old credit accounts or apply for new accounts while you’re in the middle of the process. Also, be sure to review your credit reports for errors and have any inaccurate information removed or corrected.
Pay down your existing debt
Along with improving your credit score, lenders want to see how well you’re managing your current debt load. Never max out your credit cards. Keeping balances below 30% of your revolving credit limit will show lenders that you can manage your finances responsibly.
One of the most important factors that lenders consider is your debt-to-income ratio. Most of the time, they will not extend mortgages to borrowers whose monthly debts eat up more than 43% of their income.
Get a mortgage preapproval
Consider getting pre-approved for a mortgage by Gem Home Loans. A preapproval is a letter you receive from a lender that estimates your loan amount and interest rate, based on a review of your financial information, including bank statements, credit reports, pay stubs, and tax returns. Once preapproved, you can start shopping for houses, submitting bids, and negotiating home prices. Home sellers like to see preapprovals because it means you are likely to have access to financing to complete the sale.
As you search for the best mortgage rates in Rochester Hills, Michigan, consider Gem Home Loans. Visit us online or call us at (248)-318-2394, and let us help you meet your financial needs.