Located smack dab in the middle of one of the most beautiful states in the union, North Haven, Connecticut is one of the best places to live in the country. Situated just south of Hartford and a direct shot to New York City, North Haven does a great job of combining the best of small town living and big city life, all in one great package. With a population of just over 20,000, North Haven is growing rapidly and is becoming a great spot to settle down in for those who still want to live in a small town, but still want to be close to where the action is. If you already call the town of North Haven home, you might be interested in learning more about a great refinance or a home equity loan. If you are thinking of relocating to North Haven, you might benefit from some fresh information on getting a first mortgage. Here are a few helpful tips:
Refinances
When couples finally apply for their refinance, they will do just about anything to get a leg up. Most people come to bank loan interviews with lists of questions a mile long to try to pick the brain of the loan officer and see if they can figure out the special code this lender uses to judge their applicants. One important part of every mortgage and refinance application is a little known mathematical equation called the debt to income ratio. While it may sound complicated, the debt to income ratio is a handy tool to figure out how much of your income every month is going towards bills and how much more of it can be divided up before you start to have problems. Of course, the lower the debt to income ratio you have, the better off you will be. That is why it is always a good idea to try to pay down as many of your debts as you can before you apply for any kind of bank loan. If you still have a lingering bit of your old student loans left over, zap them before you apply for your refinance. The same is true for any low credit card balances. Try to pay them down as much as you can before you approach any lender about getting a loan. The better your debt to income ratio is, the better off you will be.
First Mortgages
Your debt to income ratio is even more important when you are applying for your first mortgage. Since you do not have a payment history that shows you are a low risk client, your lender is going to put extra emphasis on your debt to income ratio. Try to make sure you do not enter into any major debt agreements like owning your own car or taking out any other loans for a year or so before you apply for your first mortgage. If you can completely pay off any other debt accounts you have before you apply, that can really help your cause, too.
Home Equity Loans
Your debt to income ratio is not quite as important with your home equity loan as it is with your mortgage simply because the amount of money you are borrowing is so much smaller. But, you still have to show the lender that you will not have any trouble making payments on your loan and having a debt to income ratio too high may make that impossible. If you are having trouble making payments as it is, you probably want to stay away from taking on any extra debt right now. Focus on getting yourself back on your feet and then you can tap your home’s equity to do the really big projects.
If you would like more information on getting a home equity loan, a refinance or a first time mortgage, please fill out the form below and one of our experts will contact you shortly.
