Do I qualify for a mortgage loan? Here's your answer.

Do you I qualify for an Orange County mortgage loan?

This is a question that many Orange County residents are asking right now as the real estate market continues to improve and make it almost irresistible to not buy an Orange County home.

If you’re one of those people who are considering buying your first home or you’re interested in refinancing, here are the things that the average lender will look for to pre-qualify you for a mortgage loan.

What Is My Credit Score?

Just about everyone who is interested in buying an Orange County home should be curious to know what their credit score is because, the better the credit score means the lower the interest rate they can expect to pay and the lower the mortgage payment they can expect to pay as well.

For those people who have low credit scores, it’s a smart move to avoid applying for a mortgage loan right now because, getting a mortgage loan with a low credit score will mean extra money that the borrower will have to pay in interest over the lifetime of the loan.

Time To Look At Those Debts

The next thing that lenders will look at when evaluating a prospective client for a mortgage loan is their debt-to-income ratio because, if the prospective borrower has more debt than income coming in, their mortgage loan will not be approved.

It’s All About The Down Payment

Besides having a great credit score and low debt to income ratio the next important thing Orange County lenders will look at is the down payment that the borrower is prepared to pay.

In this day and age most lenders are looking for borrowers who are prepared to put down 20%, so it’s wise to be ready with the cash in hand or be prepared to pay a higher mortgage payment and more for the lifetime of the loan.

To get an affordable mortgage quote, contact Steve Williams at Sun Financial Group today by calling (949) 699-1950.