How Credit Scores, Down Payments, and Mortgage Rates Impact You
Since your credit directly influences your approval and interest rate for a home loan, you will want to make sure you have a strong credit score. Unpaid debt, late payments, default, and lack of credit can all negatively impact your score. Your lender will be able to let you know what your score is and can advise you on how to improve it.
Most lenders require a minimum down payment of at least 3.5% of the sale price. If you aren’t able to afford that much up front, now may not be the best time for you to buy a Hill Country home. Check with a lender to find out their down payment requirements. In some cases (such as a first-time VA loan), no down payment is required.
Finally, take a look at the current mortgage rates. We recommend shopping around for the best rates available, especially since long-term mortgage rates have dropped (and remained low) in the past few years. If the timing is right and your credit is in good shape, you may want to take advantage of these current mortgage rates.
va:The U.S. Veterans Administration.
mortgage:A contract that represents the debt owed by the borrower to the lender for the money borrowed to purchase a property.