The home buying process can be daunting. With several variables at play, it can be difficult to navigate the world of real estate. One of the most frequently asked questions we receive from potential clients is, “when is the best time to apply for a mortgage?”
The time you apply for a mortgage can impact your chances of securing a mortgage loan. Priority Lending LLC experts are the leading Tucson, Arizona, mortgage lenders, helping thousands of people move into their dream houses each year. With over two decades of experience, our team can provide professional guidance to help you secure a mortgage for a home or investment property.
Here is some more information on the best time to apply for a mortgage.
When You Have an Exceptional Credit Score
To secure a mortgage loan, you should have an exceptional credit score. Lenders will look into your credit history to determine your reliability.
If you have poor credit, wait to apply for a mortgage until you raise your score as close to 850 as possible. One of the positive things about credit is that your score is not permanent. You can improve your credit score by paying your bills on time, paying more than the minimum amount, and consolidating your debt.
There are also several loan programs designed for people with low credit. Therefore, it may be possible for you to secure a mortgage loan without outstanding credit. Still, most of these programs require a score of at least 500 to qualify, and they carry a high interest rate.
When You Have a Stable Debt-to-Income Ratio
Another thing that mortgage lenders look for is your income status. Even with an exceptional credit score, lenders will not trust you without reliable monthly or annual income.
You can prove your income by submitting tax return statements or a verified letter from your employer. Typically, mortgage lenders will ask for several years’ worth of tax returns during the application process.
Also, job security is another metric mortgage companies use to determine your reliability. Most lenders like to see you at a job for at least two years before approving you for a loan.
When You Have Enough Savings
Another factor you must think about when applying for a mortgage is if you have enough money for a down payment. Standard mortgage loans require that you put down 20% of the loan upfront.
If you do not have enough savings to cover the down payment and closing costs, lenders may be wary of working with you.
The more you pay upfront, the less your monthly loan payments will be. It is always wise to have enough savings to pay for at least 20% of the loan amount before you buy a house.
Apply for a Mortgage
We hope we provided an answer to the question, “when is the best time to apply for a mortgage?”
Priority Lending LLC proudly serves the Tucson community with expert mortgage services to secure your dream home, vacation property, or commercial building. We use the best software and have constant access to the loan originator.
If you want to inquire about our mortgage services, call the Priority Lending LLC front desk at 520-231-1413.
For more loan information, here is how you can learn whether to get a loan from a bank or a lender.