Mortgage rates vary – that’s a fact. So an easy thing to do in the beginning when you’re looking for a mortgage is to call lenders and check what rates they can offer… right? It’s actually not as helpful as you’d think. And it’s the first thing most people do. So we thought we’d give a few quick explanations on mortgage rates so you can find the best lender for you – without so many phone calls.
HOW MORTGAGE RATES WORK:
Rates aren’t actually determined as much by the lender as they are by the borrower. It’s a common misconception. But the rates you can be offered depend on your income and credit. Lenders use what is known as your DTI – your debt-to-income ratio. This is basically your monthly debt stacked against your monthly income. Lenders use this to evaluate what kind of a monthly payment you could handle.
WHAT YOU CAN DO:
The best thing you can do to get better mortgage rates is to improve your credit, which will impact your DTI. You can also be saving for a down payment – the more you can put down on a house, the better your rate will be. We list some of our best and easiest tips to improve your credit here.
WHAT WE CAN DO:
Most lenders have a threshold of 40% DTI. Because of our unique direct lender set-up, our parent company will allow us to go up to 50 or 55% DTI depending on the situation. We really do try to work with you. We’re a family-based Christian lender, so we are flexible and up-front, and you’ll get to know our team. Calling lots of lenders, scraping through websites for rates you’re not even sure you’d get, and sometimes paying appraisal fees before you’ve settled on a lender – it can be stressful. We want to eliminate that as much as we can for you. In fact, we are currently paying your appraisal fees. So if you were thinking about giving us a call, we’d love to be able to help you out there as well.
Hopefully this helps you understand how mortgage rates work and ultimately makes finding a lender a bit easier as well! We’d love to help if you give us a call. As a Christian lender, we think we value the same things you value – faith and family. We’re a small, intimate team with big power backing – so we’re confident we can take care of you and your family well. Can’t wait to help you get into the perfect home!
Best,
Audrey
The Christian Mortgage Mom
