How Do You Get a Mortgage in the 3's?

I know that you've heard mortgage rates are low, low, low. Yup, historic lows. On the flip side, lending is tight. So just how do you get a mortgage in the 3's?

Well, folks, I'm here to tell you that the NYTimes has asked this question and brought us some answers. Lenders have numerous layers they look at, before you can be qualified for a mortgage, or to even refinance at a lower rate. Here are a few important highlights for you to remember:

Income and Employment History. Make sure you have a steady income for at least 2 years, and can thoroughly document your earnings. Your employment history will also be a factor in determining if you qualify for a mortgage and the rate.

Credit Score and Property Value. Now credit scores can be tricky, because it's not just your score that is looked at by lenders, but also how much you're financing. For instance, if you are financing a smaller portion of your home's value, your credit score can be a bit lower. But, the higher your credit score along with a larger down payment, the better your mortgage rate will be.

Liquid Assets and Down Payment. The more money you have saved, and are able to draw on for a down payment, with at least 2 months mortgage payments in the bank, the better you look to lenders.

The bottom line, to qualify for the best rates, you will need to be prepared to bare your life. If you are looking to purchase your west Knoxville home, and have not spoken with a lender, drop me a note, and I will be happy to recommend a few lenders to help you get started, as we look at homes that might suit you.