With mortgage rates having plunged below 4% to record lows, now is a good time to consider the available Myrtle Beach SC real estate that’s on the market. While it’s true that lenders have tightened their underwriting standards, you can still qualify for a mortgage with a good credit rating and an adequate down payment.
There are certain steps a homebuyer can take to find the right mortgage and to qualify for it.
Improve your credit score however you can. Lenders are looking for a score above 620. Those with the highest scores get the best interest rates. To see where you stand, start by checking your credit report online preferably at least six months before you’re ready to shop for a home. You can get a free credit report every 12 months from each of the three credit reporting companies – Experian, TransUnion and Equifax. Check your report for accuracy. If you find any errors contact the credit reporting company.
Keep your credit score squeaky clean or improve your score by paying down your debt as much as possible. Pay all of your bills on time even if that means having email reminders to let you know when a payment is due. Don’t close unused credit cards, but don’t open new cards, either.
Decide which type of mortgage is best for you. Fixed rate mortgages offer the security of knowing your rate will never rise. On the other hand, an adjustable rate mortgage offers lower rates and might work if you expect to be moving in a few years. A 30 year loan will keep your loan payments lower but if you can swing a 15 year loan you will have a lower interest rate and it will save you tens of thousands of dollars over the life of the loan.