A. What you as a borrower must understand is that interest rates change on a daily basis, sometimes they even change twice a day. If the market is good on a Monday and then takes a turn for the worse on Tuesday, this could impact your interest rate. If your loan process has began and you have been approved then it is suggested that you discuss locking in your rate. You can lock your loan for different time periods. The average time that a loan is locked for is 30 days.
A. Very simply put!! No borrower is the same. Each borrower or borrowers have there own individual characteristics that make up or determine what interest rate you may be qualified for. Obviously a person who has a higher score may be qualified for a lower rate. But just because your score is high this does not mean that you will always get the best interest rate. These are some things that have the most impact on what rate you may or may not be qualified for.
1. Credit Score
2. Job and job history (do you have a strong or weak job history)
3. Amount of current debt (are you over extended)
4. Past credit history (have you shown good payment history?)
5. Savings pattern (can you show that you have saved money)
6. Savings (do you have money saved in a bank account)
7. Are you putting any money down on the home? (putting money down helps)