In fact, getting the lowest mortgage rates in Houston stretches even far beyond the credit score. When you enter the mortgage industry as a potential borrower, you open yourself to some factors that would not only be responsible for your qualification for a mortgage but also determine what rates you would be offered on that mortgage.
Having said this, it becomes apparent that there is a lot at stake. There are several factors which cause the mortgage rates to vary by percentages that will be discussed below. One needs to make sure that they have done everything possible in their reach to get the lowest mortgage rates in Houston. Here are the criteria that you will be evaluated for:
Employment and Income Stability
When it comes to the mortgage lenders, it is a fact that candidates with a steady employment record for at least two years is required or at least preferred. Details like a declining pattern of earning as well as long periods of underemployment reflect a very negative image of your financial health and make you least likely to qualify for the lowest mortgage rates in Houston.
There is particular strictness when the subject of self-employment comes up in front of the lenders. For such people, the lenders will require them to produce documentation for their business income as well as their tax returns for the past two years.
This ratio comes in two forms. The first one is referred to as the back-end ratio and is defined by the sum of monthly debt payments and new house payments. This sum is then divided the gross income you make monthly. The other one is the front-end ratio and is defined solely by the housing costs and has nothing to do with the debt payments. Historically the benchmark percentages for the front-end and back-end ratio is 28% and 36% respectively. However, they can go higher up when you take into account other factors.