Lenders set minimum mortgage requirements you’ll need to meet to get pre-approved for a home loan;
The higher your credit score, the lower your interest rate will be
A lower interest rate means a lower monthly payment, which makes homeownership more affordable.
The higher your down payment, the lower your monthly payment
A down payment of 20% will help you avoid mortgage insurance if you’re taking out a conventional loan. Mortgage insurance covers the lender’s foreclosure costs if you default on your loan.
The longer the term, the lower your monthly payment
First-time homebuyers typically choose 30-year terms to get the lowest monthly payment.
The less monthly debt you have, the more you can borrow
Clear out those car loans, student loans and credit card balances if you want the most mortgage borrowing power. Source
DRE ID # 01769353
NMLS ID # 394275
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