One of the fastest growing cities in all of the South is Jackson, Mississippi. It provides the best of small city life, with the easy ability to escape into the beautiful Mississippi night for hunting, fishing and camping. The town of Clinton sits just outside of Jackson and it has become the suburb of choice in the Jackson area. With easy access to and from downtown Jackson, as well as a straight shot south to beautiful New Orleans just a few hours away, it is no wonder that the Jackson metro area, and especially Clinton, have become such a popular spot to put down roots. If you already call the great town of Clinton home, you might be interested in learning more about a great home equity loan or even a complete home refinance. If you are thinking about relocating the family to Clinton, you might be in need of a stellar first mortgage. Here are a few tips to get you through your next home loan process with a smile on your face.
Refinancing
It may be one of the most important, and one of the toughest to answer, questions that every refinance applicant asks themselves once they have filled out the application and submitted the necessary documents: what part of my application in the most important? It can be almost impossible to know for sure and it is common for different lenders to value different aspects of your application more than others, but one part of your application that is always important is your debt to income ratio. Your debt to income ratio is a percentage that shows how much of your money that comes in goes out to your debt. Of course, the lower the number, the better, but how many people out there have no debt? Not many, and since you are applying for a refinance, it is a great step forward to reducing your overall debt. So, how do you reduce your debt to income ratio? It can be a tough balancing act. People are told to make sure they have enough cash on hand to pay the 20 percent down payment, as well as having a little extra for buying points and still more so that the lender can see you have adequate savings in case you lose your job. So how much can you spend to help pay off things like credit cards, student loans and car payments? There really is no answer, but try to pay off as much of your outstanding debt as you can and stuff have enough for those other things.
First Mortgages
Unfortunately, when you apply for your first mortgage, things like your debt to income ratio are even more important. Why? When you are refinancing, you are getting your second mortgage. You now have a solid history of making your mortgage payments on time every single month. Even if you do not use the same lender for your refinance as you did for your first mortgage, this is a huge thumbs up for your overall credit. When you are applying for your first mortgage, you do not have that, so more emphasis is put on other things, like your debt to income ratio. But if your ratio is a bit out of control, do not think that a first mortgage is out of reach. The majority of first time applicants have less than ideal personal finance and credit histories, so you are all in the same boat. This is why so many people go on and refinance later.
Home Equity Loans
Things like your debt to income ratio matter a little less when you are going after something like a home equity loan. Your personal finances still matter, but the major deciding factor is how much equity you have in your home and how much of that equity you want to borrow.
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.
