Higher mortgage rates can affect the purchase power of Northwestern Wisconsin home buyers. Here are tips to help you get the best possible financing for your new Northwestern Wisconsin home!
1. Get a pre-qualification from more than one lender. Compare the rate, fees and costs attached to each financing offer. To avoid “dings” to your credit score, shop for mortgages within a two-week window.
2. Make a larger down payment. The less you have to borrow, the better your loan-to-value ratio. This reduces the risk to the lender, and improves the rate offers you’ll receive.
3. Consider paying a “point” or two. A point is basically loan interest you pay in advance at closing. Each point is equal to 1% of the amount borrowed.
4. Pay off credit cards and installment loans. This will improve your credit score and improve your debt-to-income ratio. In turn, you’ll qualify for better rates and perhaps a higher mortgage amount.
5. Consider an Adjustable-Rate Mortgage (ARM). These offer a fixed rate for set number of years before converting to an adjustable rate. You can find 5/1, 7/1 and 10/1 ARMs, meaning the rate is fixed for five, seven or ten years, before annual rate adjustments begin.
Let us refer you to reliable lenders in Northwestern Wisconsin! As a locally-owned family business with over 40 years of experience, we can help you with the entire home buying process. Call Six Lakes Realty today for friendly, hometown service!
John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806
Email: john@sixlakesrealty.com
2 Comments
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Excellent article. I’m dealing with many of
these issues as well..