A Sufficient Down Payment
Lenders may require a varying amount as adown payment (as low as 3.5% and as high as 50% in the US), depending on the borrower and the purchase
The higher the down payment, the lower the interest payment will be on the remainder of the loan
Assess your credit score and debt-to-income ratio
- Yout FICO score demonstrates your ability to repay your debts
- Assess your credit score once you plan to obtain a mortgage loan for house purchase
- Try to maintain a credit score above 640
- The Consumer Financial Protection Bureau has rules stating that the debt-to-income ratio cannot exceed 43%
An Affordable Interest Rate
- Check with different financial institutions to get a favorable interests rate
- A great tool for researching and comparing interest rates is a mortgage calculator.
Being Able to Pay Closing Costs
- Closing costs are the expenses, over and above the price of the property, that buyers and sellers normally incur to complete a real estate transaction
- Borrowers need to pay for the appraisal, credit report, attorney/closing agent fees, recording fees, and processing fees
- Closing fees typically vary between 2% to 5% of the purchase price