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Friday, 18 March 2016

Negotiating For Favorable Mortgage Interest Rates Memphis

By Ruby K. Abernathy


Owning a home is one of the most important goals in life. Negotiating favorable mortgage interest rates Memphis is quite difficult because only prospective home buyers who meet certain requirements are considered for loans. These requirements need to be in the public domain so that the customers can use them to their advantage when negotiating for affordable charges when buying property

The credit score of a prospective home owner is usually calculated basing of their history as far as loan repayment is concerned. Customers need to boost their chances by making sure that they pay their loans early and wholesomely. This will boost their chances of arguing for better rates in future when they want to purchase property.

Employment translates to financial stability and this is a condition that qualifies one for a home loan. Those in employment in the previous two years are presumed to have a steady flow of income and can pay their debts. Customers should ensure they provide their updated employment records in order for them to be given home loans at good interests.

Customers should ensure that their debt-to-income ratio is low because this shows that they have the ability to repay their credit. Someone with a low ratio is more likely to get a lower percentage than someone with a higher ratio. Prospective home owners ought to have an average ratio of forty three percent to stand a chance of proper negotiation.

The down payment received by the bank determines how much charges accrue from the property loan. Normally, it must be twenty percent of the value of the home. Any monies paid on top of that improve their position to negotiate and so clients need to have met this threshold to qualify for cheaper rates.

The size of the bank account of a customer is also factored in the negotiation. Being in a solid financial situation by having a good bank balance puts one in a favorable state for negotiating lower values because it shows that they can pay their mortgages without straining or even defaulting.

The current economic condition can also have an influence on the interest payable. Cheaper rates can be negotiated when the economy is in uncertainty and a lot of people are selling their homes. In such a situation, the properties can be acquired cheaply and this means the customer will spend less money acquiring them. A glut lowers the value and prices of property. Knowledge on how mortgage rates are is important.




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