How to Get the Best Mortgage Loan for You

Getting a great rate on the mortgage is not easy and it's about much more than just your credit score. The mortgage industry will analyze different factors to make sure that if you qualify and what interest rate you will pay. If you want to get the best mortgage rate you need to make sure that you are well qualified or not. Let's take a look at the criteria that mortgage broker evaluates and some tips that you can use for improving your current standing.

First of all, you need to understand the credit score requirements or if you want to increase the chances of best rates then you need to monitor the credit score and make improvements when necessary. This can involve paying down or paying off loans, settling past-due collection accounts, and cleaning up any errors you find on your credit report. Employment and income stability is the second most important factor and a mortgage broker will prefer all those candidates who can prove the employment for at least the past two years.

Long term of unemployment well makes a hurdle in your application so the best thing is that you have been on the same job for at least the last two years, or have made a job change to a higher paying position at that time. When it comes to Debt to income ratio there are two forms in which the back end ratio is used for measuring the total of all your monthly payment plus your proposed new housing payment, divided by your stable monthly gross income.

The main focus of the front end ratio is all your housing cost excluding all other debt and the down payment that you need to maximize the chances of the best mortgage is 20% of the purchasing price of your home.