Wednesday, March 16, 2016

How To Negotiate For Favorable Mortgage Interest Rates Memphis

By Ruby K. Abernathy

Home ownership is the ultimate dream of every person. Negotiating favorable mortgage interest rates Memphis is hard because banks only give good rates to customers who fulfill certain conditions that those seeking to buy homes must be aware of. There are several ways that a prospective home owner can use to get percentages that will be pocket friendly and will not strain their finances.

The credit score is used by banks to determine whether the customer deserves a mortgage or not. This is based on the previous loans they took and the amount time they used to repay them. This will be used to determine their suitability for mortgages. Those who have higher credits are given lower rates than those with lower credits. Customers should therefore ensure that they not only meet minimal credit requirements but also maintain high credibility levels.

Financial stability is one benefit of long term employment and this is helpful when one wants to qualify for a home loan. This will show that their income flow is stable and therefore are in a position to repay any debts they might have. One should make sure he has his up-to-date employment record when seeking a mortgage because it will help them during the negotiation.

Customers should ensure that their debt-to-income ratio is low because this shows that they have the ability to repay their credit. Someone with a low ratio is more likely to get a lower percentage than someone with a higher ratio. Prospective home owners ought to have an average ratio of forty three percent to stand a chance of proper negotiation.

Whenever one needs to buy property through a mortgage, a twenty percent deposit must be made. This is a fifth of the selling price of the property. Any amount paid on top on this minimal threshold is a plus and helps boost the chances of not only getting a mortgage but also negotiating for a good repayment plan. Future home owners must therefore make sure they not only meet the threshold but are also in a financial position to pay an extra amount to secure their position.

The amount of money the client has in his bank account is also used to determine their suitability for mortgages. Having money puts someone in a position to get lower rates because this is an indicator that they can make payments with little strain.

The prevailing economic situation also influences the interest that accrues. Customers can negotiate lower values when the economy looks uncertain and more people are disposing off their properties. In this case, they can buy property cheaply. Before going for a mortgage loan, its important to have enough knowledge.

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