A recent MSN Money Magazine article stated that Nashville Tennessee, the center of the country music universe, has come in at #16 is one of the top 25 best places to get a mortgage.
And it’s easy to. Getting a mortgage in Nashville is relatively easy compared to a lot of other places. Just 6.4% of home loan applications are denied and it’s usually due to excessive debt compared to their income.
Debt to income ratio is a large factor when it comes to your real estate mortgage and the terms. Lenders want to see at least 43% or less of your income going towards debt and that includes student loans, child support, housing expenses, credit card debt, car loans, and any other debt you have accrued and are paying on monthly. For instance, if you make $100,000 a year, no more than 43% of that income should go to pay off any debt. Buyers like to see that closer to 28% or lower so that the applicants are just less risky. The less risky an applicant is the better the terms. For instance, that same applicant with a 43% debt to income ratio may have a 4.5% interest rate whereas the same applicant with a 28% debt to income ratio may only have 3.1%. That could mean a difference of tens of thousands of dollars over the life of the loan and a couple of hundred dollars a month at the minimum.
- There are a lot of different loans to choose from including VA for those that are served in the military, USDA home loans for buyers in rural areas, FHA for first-time homebuyers or those looking for a low down payment option, or conventional loans, preferred by those selling and using their equity to put in a full 20% down payment or more on their next home.
Every applicant is different and there’s usually a loan and a program designed specifically for that buyer. We have connections with a lot of reputable and local real estate lenders that can go over your options and give you the best rates in town. Again, Nashville has come in as one of the easiest and best places to get a mortgage so why not see what your chances are today. Give us a call to be connected to a local Nashville lender today.
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