Get Insider Secrets from Top 2019 Real Estate Lenders
Key Insights from Top Lenders
Top real estate lenders in 2019 emphasized the importance of credit readiness and financial planning. A strong credit score not only improved your chances of loan approval but also secured more favorable interest rates. Lenders also advised potential borrowers to maintain a low debt-to-income ratio to enhance loan eligibility3.
Another critical insight was the value of pre-approval. Getting pre-approved for a mortgage provided a clear understanding of your budget and positioned you as a serious buyer, which was particularly advantageous in competitive markets4.
Financial Considerations and Costs
Understanding the costs associated with real estate loans was essential. Beyond the interest rates, borrowers needed to account for closing costs, which typically ranged from 2% to 5% of the loan amount. These could include fees for loan origination, appraisal, and title insurance5.
Additionally, lenders often offered discounts or incentives for borrowers who set up automatic payments or bundled other financial products. Exploring these options could result in substantial savings over the loan’s life6.