Loan Officers

• Mortgage companies, brokers and loan officers can provide information on different home loan programs and discuss eligibility requirements for each mortgage loan. Several choices are available such as a fixed rate or adjustable rate, 30-year term or 15-year term, conventional mortgage or government-backed mortgage. Brokers and loan officers not only provide information on mortgages, but they can compile free loan quotes so that you can compare interest rates, mortgage payments and other mortgage terms.
  
  

Best Credit Score

• Because home buyers want the lowest monthly payment possible on a mortgage loan, getting the best interest rate on the loan is often a top priority. This calls for the best possible credit score. This doesn't suggest a perfect score of 850. However, buyers with scores higher than 740 can usually secure the most competitive mortgage rates. Lenders will qualify buyers with scores 680 or higher (620 for FHA mortgage loans). However, scores within this range aren't guaranteed the best mortgage rate. Tips to boost credit scores include paying bills on time each month and reducing debts.
  
  

Benefits of a Down Payment

• Down payments do help bring down the mortgage rate on a home loan, and the higher your down payment, the better. Talking with a broker or loan officer can provide you with information on minimum down payment requirements for the different types of mortgage loans. Usually, lenders require a minimum down payment of 5 percent, but you're always welcome to forward a higher down payment. A down payment of 20 percent helps build equity sooner in the property, and you won't have to pay private mortgage insurance, which protects the mortgage company if you stop making payments.
  
  

Two-Year Employment History

• Being unaware of the two-year employment requirement established by some mortgage lenders can slow down the home buying process. Lenders do not approve mortgage applications if there's a history of hopping from job to job or long gaps in employment. Two-years of consecutive employment indicates stability, and individuals with consistent employment are less likely to stop making payments. Showing copies of income statements or tax returns for two or more years suggest stability and the ability to make home loan payments each month.