With the endless beach that is Florida’s Atlantic coast as your front yard, the town of Rockledge, Florida is truly a one of a kind spot to call home. Unlike the southern part of the Atlantic coast which is choked to the gills in overpopulation, Rockledge is still somewhat sparsely populated. It is an easy drive to all of Florida’s magnificent tourist attractions like the Disney theme part area, the beautiful gulf coast and the Miami Beach area, too. Even points north like Jacksonville and Atlanta are a straight shot. It is no wonder then that those people who discover Rockledge tend to move there right away. If you already call the great town of Rockledge home, you might be interested in learning more about a home equity loan or even a complete home refinance. If you are thinking about relocating your family to Rockledge, you might be in need of a fantastic first mortgage. Here are a few helpful bank loan tips to get you through the process.
Refinance
Even for those experienced bank loan veterans who have been through this whole process before, it can be a confusing and even baffling road from application to decision. People often wonder how a lender even comes up with the numbers they do once the application process is over. While we cannot reveal the entire magical formula here, one part of your application that all lenders consider is called the debt to income ratio. The debt to income ratio is a handy little number that shows your lender how much of your monthly income is going right out the door to things like your current mortgage, car payments and credit card payments. The lower the debt to income ratio that you have, the better off you will be in the mind of the bank. Why? The lender views a low debt to income ratio as a kind of security blanket that protects them in case of tight financial times. When you have a low debt to income ratio, you have more disposable income each and every month and there is a better chance that your mortgage payments will get paid on time every month. If you have a high debt to income ratio then there is a better chance that you are just scraping by every month and that there could be a problem making your payments every month. But, do not fret if you do not have the perfect debt to income ratio. It is only one part of the big picture that lenders take into consideration. Do not let an average or even a bad debt to income ratio stand in the way of you realizing your refinancing dreams.
Mortgages
As important as your debt to income ratio is when you refinance, it is even more important to those looking to get a first mortgage. When you refinance, you have a proven track record of making your monthly mortgage payments on time each and every month. To lenders, this is like the golden ticket; proof that you are not a high credit risk, that you are responsible and trustworthy. It is the major reason why most folks get a better deal on a refinance then they do on a first mortgage.
Home Equity Loans
Your debt to income ratio is still important if you are considering getting a home equity loan, however, the amount of equity you have and the reasons why you want to borrow from it are still paramount. If you can demonstrate to your lender that you have a rock solid plan for what you are going to do with the money you are borrowing then you will be in great financial shape come application decision time.
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.
