If you’re considering buying a home and unsure of whether the time is right, learn more about the variables that affect your eligibility for a mortgage and what you can do to increase your chances of acquiring one.

When considering the best time to apply for a mortgage, timing involves much more than just market circumstances. The second most significant aspect of your mortgage transaction, service, depends heavily on timing.

3 Ideal Moment to Apply for a Mortgage

• Once Your Credit Score Is Available. Any sort of loan carries some risk for both the lender and you, the borrower. Lenders can safeguard their interests by giving the best terms to borrowers with the best credit scores. A lender may completely reject a borrower’s mortgage application if they decide that the borrower’s credit history isn’t strong enough. Your chances of getting a mortgage approval generally increase with your credit score. If you have a very good or superb score, you’ll also get a cheaper interest rate on your mortgage. Credit ratings are wonderful since they aren’t set in stone. Your credit score probably changes from month to month depending on how much debt you currently carry and whether you have and utilize credit cards. You may take steps to raise your score if you’re interested in applying for a mortgage but don’t yet have a very good or excellent score. You can concentrate on paying off your debt if you have a lot of it. If you’ve fallen behind on payments, get current and commit to paying everything on time to improve your credit score.
• As Soon as You Have a Regular Income. Lenders often want evidence that you have had a stable job and a predictable income, despite the fact that it is difficult to predict the future with any degree of precision. They will examine several years’ worth of your tax returns to do that. Your tax returns should reflect a constant or slowly rising income over time. Lenders typically examine your employment history in addition to your income. They frequently demand proof that you have worked for the same company for at least two years. Lenders will require proof of income for at least two years if you are self-employed. You may need to wait a few years before applying for a mortgage if you recently started a new job or are just beginning your career to give your income and employment time to stabilize.
• Once You Have Enough Money Saved. According to conventional thinking, you should have at least enough money to put 20% of the home’s cost down. You would need to have $40,000 in cash to put down on a $200,000 house. It’s excellent if you have saved up that much money or 20 percent of the cost of the house. However, just because you don’t have that much cash on hand doesn’t imply you won’t be able to purchase a property or obtain a mortgage. A down payment is not necessary for some programs, including VA and USDA loans. Others, like FHA loans, just require a 3.5 percent down payment. With as low as 3 percent down payment, you can also obtain a conventional or non-government backed mortgage.

Let Mortgages by Misty Find Your Ideal Loan Option

You must have enough money to cover closing costs and set aside money if the house needs repairs or replacements after you’ve purchased it. The amount of money you should set aside before buying a home also depends on its age and condition.

If your house is older and has fewer updates, you might want to keep more money in reserve. You can frequently safely have a smaller home repair emergency fund if the house is newer or has recently been updated.

If you’re looking for the best options for mortgage loans in Tempe, look no further than Mortgages by Misty. We can help you choose the loan product that is right for you. Call us now at (480) 618-5358 to set up your consultation!

A flexible mortgage is a home loan that allows the borrower to make additional payments on their principal balance without being penalized. This type of mortgage can benefit borrowers who expect a windfall of cash, such as a bonus or inheritance and want to pay their mortgage balance more quickly.

This allows you to customize your monthly payments to meet your specific cash flow needs. This is in addition to the standard variable and fixed rate mortgage options, both of which have penalties for early redemption.

Read on as we discuss flexible mortgages further.

What Are the Various Kinds of Flexible Mortgages?

A flexible mortgage is a type of mortgage loan that allows borrowers to make extra payments, pay off the loan early, or change the loan’s terms. This can be a good option for borrowers who expect their income or financial situation to improve over time.

1. Fixed-Rate Flexible Mortgage. A fixed-rate flexible mortgage is when the interest rate is fixed for a certain period but becomes variable. This can be a good option if you want the security of a fixed rate and the flexibility to change your mortgage in the future. The main advantage of a fixed rate flexible mortgage is that it gives you the security of knowing your monthly payments for a set period. This can help you budget more effectively and plan for future interest rate rises.
2. Tracker Rate Flexible Mortgage. The main advantage of a tracker rate flexible mortgage is that the interest rate can fall and rise, depending on the external base rate you are following. When the interest rates go down, you will also have lower monthly repayments. The rate is usually at 0.5 percent lower than the standard variable rate, which can significantly affect your monthly repayments.

What Are the Advantages of Flexible Mortgages?

One of the main advantages is that borrowers can make overpayments on their mortgage, which can help reduce the overall amount of interest paid over the life of the loan.

Another advantage of flexible mortgages is allowing borrowers to take payment holidays. This can be useful if borrowers experience a temporary drop in income or need some extra cash for a significant purchase.

Flexible mortgages also offer lower interest rates. This is because lenders view them as being less risky, as borrowers have the option to make overpayments. This can help to reduce the outstanding balance.

Overall, you can save money on interest, pay off your mortgage faster, and build home equity more quickly with flexible mortgages. However, it is essential to remember that they also come with some risks, such as the possibility of rising interest rates. Therefore, weighing the pros and cons before deciding whether a flexible mortgage is a suitable option for you is crucial.

Your Experts at Mortgage by Misty

Flexible mortgages offer many advantages for borrowers. However, there are also some risks associated with flexible mortgages. Make sure you understand all the terms and conditions before you agree to one.

If you are looking for ways to buy a home in Arizona, Mortgages by Misty is here to help. We can help you choose the best mortgage that fits your needs and situation. Contact us now at (480) 618-5358 for details.

We can’t all afford homes that need little to no work done on them. That’s why mortgages exist. If you’re purchasing a first home, improving an existing home, or want to invest in a rental or vacation home, get the best mortgage possible.

The rate and terms of your loan will impact the amount of interest you pay throughout the duration of the loan. The more you lower your rate, the more you’ll save on interest.

Tips To Get a Land Reasonable Mortgage Rates

Check out this list of tips we made to help you land those low rates:

1. Aim for Twenty Percent Down Payment. If you have enough cash on hand to pay a 20% down payment, you can get a lower mortgage rate than if you make a smaller down payment. Also, if you have enough cash to pay a 20 percent down payment, your monthly payments might be lower because you can get rid of mortgage insurance sooner.
2. Choose to Go for the Fifteen-Year Mortgage. On a regular mortgage, you make monthly payments for thirty years. On a fifteen-year mortgage, you make payments for half that time. This is desirable if you’d like to pay off your mortgage faster. If you do, you’ll save on interest payments. Fifteen-year mortgages generally have lower interest rates than standard thirty-year mortgages, and by finishing your payment on a faster schedule, you’ll definitely end up saving more money.
3. Take Time to Raise Your Credit Score. Your credit score is calculated using your credit report, which tracks your credit history. The better your credit history, the better your score. The higher your credit score, the lower your rate. One of the most significant factors that affect your score is payment history. If you’re late on payments, that negative mark stays on your credit report for seven years. While there are ways to remove this mark from your report, you should help your situation by working to consistently pay your bills on time.
4. Prepare Your Employment Record. Bankers want to know that you have a stable income, and they want to know that you’ll be able to pay your mortgage. Your payment is one of the biggest factors when you’re applying for a mortgage loan. If you don’t earn enough each month, you won’t be able to afford a suitable mortgage. On the other hand, you won’t be eligible for certain mortgage programs if you have a  higher monthly income. Show lenders that you’re well equipped to pay for your mortgage by giving them employment records that your income can support it.

Your Home Loan Experts at Mortgages by Misty

To get the best home mortgage rates, make sure to follow these tips. You can improve your score and make yourself a more attractive candidate for the banks by paying your bills on time, having a steady income, working to lower your debt, and applying for a loan at the right time.

Buy your dream Arizona home with the help of credible home loan experts. We’ll help you find and choose the right mortgage that will have you living comfortably. Contact us today at (480) 618-5358 to schedule your consultation!