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Mortgage Secrets when Buying a New Home in Round Rock

By
Real Estate Agent

Round Rock, TX Mortgage:

Financing Secrets for Buying a New Home in Round Rock

 

The new homes for sale in Round Rock vary from large estates to urban oasis condos. But no matter what property you buy, when financing is required you’ll have to secure a home mortgage. They may seem intimidating at first, but Round Rock mortgages are easy to obtain when you know the insider secrets for securing loans.

 

 

Mortgage Secret #1 - Know Your Debt to Income Ratio

 

Before you approach mortgage lenders you’ll need to get your financial house in order. Gather together all of your financial documents and comb through your accounts to get a good idea of where you stand financially. The first thing to look at is your Debt-to-Income Ratio.

Debt-to-Income Ratio is a measure of how your gross monthly income stacks up to debt repayments. The smaller the percentage of income you use for debt repayment the better. Typically 40% or less is acceptable for many lenders.

 

Mortgage Secret #2 – Know Your Debt-to-Credit Ratio

 

Debt-to-Credit Ratio refers to how much of your credit line is being used. For example, if you have a credit card with a credit line of $6,000 and you’re carrying a $3,000 balance the ratio is 50%. It’s best to utilize 30% or less of your credit lines. This will also help your credit score, which is critical when you’re trying to secure a home loan.

 

Mortgage Secret #3 – Shop Around for the Best Loan and Rate

 

Many buyers mistakenly believe that all lenders offer basically the same thing. However, this is far from true. It’s in your best interest to shop around and interview numerous lenders. Ask about the types of loans they offer, the most competitive interest rates they can offer (based on your unique circumstances) and how the loan will be serviced after you close on your home. Also ask how they can help you improve your chances of getting through the Automated Underwriting process by making adjustments to your finances.