Gone are the days when giving a toaster was a mortgage lender’s way of thanking their customer. Today, lenders focus on loan offers and promotions. It is all about building relationships.
With many different mortgage lenders out there, and loan promotions available, we have put together a list for you of what mortgage lenders look for:
Mortgage loan offers usually focus on the risk you pose
The first thing mortgage lenders are doing when you apply for mortgage financing is checking your credit history or profile. Your credit history or profile, on which lenders base much of their decision about your loan amounts and rates, is a reflection of their confidence in your ability to repay them.
It is mainly your financial information that informs mortgage lenders about how much risk they may face if you borrow money from them, so, if things like your debt-servicing ratio is high, you will be deemed as a higher risk versus someone who has an excellent credit profile and is in good financial standing. Take a look at TTMB’s Avoid – Disregarding Your Credit Rating for further insights.
The good news is, TTMB is extending the term of a mortgage loan from 65 years to 70 years for persons who can prove an earning potential beyond their retirement age. Also TTMB’s acceptable debt service gross ratio will soon be at 35% for mortgages only and at 45% net for mortgage loans. Visit TTMB for more information on the exciting promotions to come.
At the end of the day, prove your creditworthiness to a mortgage lender so you can get the best possible rates.
Mortgage loan offers champion low interest rates
Naturally, a mortgage loan offer with low mortgage interest rates is what matters! This will save you thousands of dollars over the life of your loan. As you know, TTMB has 2% mortgage interest rate, and a 5% mortgage interest rate.
Remember, TTMB is known for the stability of their interest rates. Their rates do not vary based on market conditions, so customers are never caught off-guard by unplanned increases in their mortgage balances. For further details, please read the Home Smart blog Stable Interest Rates on how TTMB offers more stability to customers than the banks’ rates.
All in all, be sure to compare rates from multiple lenders before making your final decision.
Mortgage loan offers include low fees
Most times, mortgage lenders are providing you with minimal cost with regard to fees like downpayment, application fees, closing costs (legal fees and charges) and homeowner’s insurance. TTMB can provide you with an estimate of these costs. Generally, your closing costs range from 5% to 7% of the mortgage amount.
Make sure you know exactly how much you will be paying in total costs, and be confident in asking the mortgage lender to break down these costs for you. Homeownership may be the dream, but keep one foot on the ground, too.
Mortgage loan offers have a wide variety of loan programs
Mortgage lenders offer conventional loans, and in some instances government-backed loans. TTMB is now offering 95% financing and mortgage/financing of up to $2 Mil maximum.
Make sure to do your homework. You are finding a home but you are also making a financial commitment you will have to live with for years.
