Compare Listings

Not all advertised rates are available for everyone

Lenders regularly publish mortgage rates but they may not be available for everyone. 59607784-250.jpg

Imagine that the mortgage payment based on an advertised rate influenced a buyer to make an offer on a home. After negotiating a binding contract, this buyer makes a loan application and finds out that for any number of possible reasons, that rate isn’t available.

Even if the person does financially qualify for a loan at a higher interest rate, it will not be the payment that the buyer expected when the contract was negotiated.

Lenders evaluate several factors such as the borrower’s credit score, debt-to-income and loan-to-value ratios. These variables are used to assess the risk associated with the repayment of the loan.

While mortgage money is a commodity, it isn’t priced the same way items are that involve cash for goods. The lender puts up the money today based on a promise from the borrower to repay over a long term, possibly up to thirty years.

The simple solution to avoid surprises such as the one described here is to get pre-approved at the beginning of the home search process. Since pre-qualification does not mean the same thing to all lenders, call if you’d like a recommendation of a trusted mortgage professional.


Source: InTouch

img

admin

    Related posts

    Delighted Independence Day!

    Wishing you & yours a safe & Happy 4 th of Come july 1st!...

    Continue reading

    Good Information makes Good Decisions

    While low inventory is challenging homebuyers, not having a clear understanding of mortgage...

    Continue reading

    When it is a Good Time to Refinance your orlando Property

    Regardless of the reason to refinance a home, the basic question to ask is: “Do you plan to live...

    Continue reading

    Join The Discussion