It’s the question everyone wants the answer to – how do I get a mortgage in 2020? Well, luckily for everyone, it’s never been easier to get a refinance or mortgage for a new home purchase than it is right now.
Getting a mortgage has become a fairly rapid process in the last year, especially due to advances like our 5 Minute Loan Approval. You can apply online, deliver docs online, and complete the process without ever talking to a person if that’s your choice. Of course, we still offer our amazing customer service and will come to meet you wherever you choose to discuss your options!
However, mortgage rules still apply. You still have to have good credit and a solid debt-to-income ratio. You still have to be able to put some money down unless you are getting a VA or USDA loan. We still have to go over your credit history to make sure that you can pay off the loan we’re giving you.
So if you want to get a mortgage loan in 2020, you’d better make sure that your credit score is high and your debt-to-income ratio is low.
Improving your credit score:
There isn’t a magic trick to improving your credit score, unfortunately. The only way to do it is to work hard and pay your bills on time. Missing and late payments on anything from your credit cards to utility bills just kill your credit score. If you want to buy a house or refinance to today’s low rates, getting your credit score in order is the absolute best first step.
You can order a credit report from the big 3 (Equifax, TransUnion and Experian) to check them and make sure that there aren’t any erroneous claims on your record. Many people have found false or incorrect information in their credit reports that can lower their credit score and keep them from buying a home or car.
Lowering Your Debt to Income Ratio:
This is just like it sounds. Your debt-to-income ratio (DTI) is literally what you owe vs what you make. If you have $2000 of bills due per month and make $6000, your debt-to-income ratio comes out to 33%. Keeping this ratio under the magic number of 43% is the goal when it comes to mortgages.
The best way to do this is to pay off your outstanding debt. If you are planning on buying a car, put it off until after the mortgage. Pay off your credit cards. Finish off your student loans. Do anything you can to lower your DTI before applying and it will help you not only get the loan you are asking for, but to get you a lower interest rate when you do.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, and Nashville at (615) 810-8555. You can always apply online with our 5-Minute Loan Approval at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?