Many people who shop around for mortgages do so because they see ultra-low interest rates advertised… but what happens when you go to get a mortgage and the rate they offer you is higher than what initially drew you in?
Why Are Interest Rates Different Than They’re Advertised?
When lenders offer super-low mortgage interest rates, look closely. You’ll most likely see a disclaimer that says the rate they’re showing is the best possible rate.
IN order to qualify for that incredibly low interest rate, you need a high credit score (probably 750 or higher) and a very low loan-to-value ratio.
How do you get a low loan-to-value ratio?
You’ll have to make a sizable down payment. In lender’s terms, that means you’ll be paying about 40 percent of the home’s purchase price as a down payment.
(If you’re worried about coming up with a 20% down payment, there are programs available that will cost you far less up-front.)
When the bank evaluates your credit score, they’re doing so to determine whether you’re a high-risk, a medium-risk, or low-risk investment. The riskier you are, the more you’ll have to pay in interest.
Other factors that affect what type of interest rate you’re able to get include the type of property you’re buying, how large the loan is overall, and whether you have other loans (and whether they’re current).
Are You Moving to Grand Junction?
If you’re thinking about buying a home in Grand Junction, Fruita, or any of the surrounding communities, we’d love to help you.
Call us at 970-765-4135 or get in touch with us online to tell us what you want from your dream home. We’ll help you find it.
In the meantime, check out our:
- Grand Junction homes for sale under $100k
- Grand Junction homes for sale between $100k and $200k
- Grand Junction homes for sale between $200k and $300k
- Grand Junction homes for sale between $300k and $400k
- Grand Junction homes for sale between $400k and $500k
- Grand Junction homes for sale between $500k and $600k
- Grand Junction homes for sale between $600k and $700k
- Grand Junction homes for sale between $700k and $800k
- Grand Junction homes for sale between $800k and $900k
- Grand Junction homes for sale between $900k and $1 million
- Grand Junction homes for sale over $1 million
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