Mortgage Preparation Archives

As we move into the last month of 2024, many potential homebuyers are eagerly awaiting a drop in mortgage rates. With inflation numbers looking promising, there’s hope that the Federal Reserve will lower the federal funds rate, which typically drives mortgage rates down as well. If you’re planning to buy a home or refinance when rates drop, now is the perfect time to start preparing. Here are five key steps to get ready for the mortgage rate decrease and ensure you’re in the best possible position:

1. Improve Your Credit Score
Your credit score is one of the most important factors lenders use to determine your mortgage rate. A higher score can help you secure a better rate, potentially saving you thousands over the life of your loan. To improve your score:

Pay all bills on time.
Work on reducing credit card balances and avoid maxing them out.
Regularly check your credit report for errors and dispute any inaccuracies.

2. Assess Your Debt-to-Income Ratio (DTI)
Your DTI ratio helps lenders assess your ability to manage monthly mortgage payments. A lower DTI ratio (below 36%) is ideal, but you can improve it by reducing debt or increasing your income. Focus on:

Paying down high-interest debt.
Avoiding new credit obligations during the home-buying process.
Budgeting and prioritizing debt repayment.

3. Save for a Larger Down Payment
The more you can put down on your new home, the less you’ll need to borrow, which can lead to lower monthly payments and better loan terms. Saving for a larger down payment can also help you avoid private mortgage insurance (PMI). Consider:

Setting a clear savings goal and timeline.
Opening a dedicated savings account.
Automating your savings to stay consistent.

4. Explore Your Loan Options
Not all mortgage products are created equal. From FHA loans to USDA and VA loans, there are many programs designed to help you based on your unique financial situation. Research the different options available, such as:

FHA loans for first-time buyers or those with less-than-perfect credit.
VA loans offer no down payment for veterans and active-duty military members.
USDA loans for those buying in rural areas.
Non-QM loans for self-employed or non-traditional borrowers.

Connect With Us
The mortgage process can be complex, especially with changing rates. We can help you understand your options, improve your financial standing, and guide you through the homebuying journey. We will help to advise you on the best loan programs based on your situation and help you lock in the most favorable terms once rates drop.

Lee Vanvolkenburg

15:43 23 Nov 23

Michael and his team were wonderful to deal with. They were excellent with communication and always available to answer questions. Thank you all!

williams lovos

22:54 16 Nov 23

We close on the house tomorrow! Thank you David and Michael for making my first home buying a smooth process. I had several out of the ordinary situations that would had easily not been possible to get the loan in the time that they were able to approve it. My wife and I are forever grateful for the work the team did. Thank you again!

Mario Silvestri III

16:45 16 Nov 23

Rex Perkins

16:56 15 Nov 23

Everything had been going well over the past two years since refinancing an existing mortgage. The application process, approval, servicing website, everything had been very smooth, nothing but the best service. I then had a minor issue arise. We had a wind loss claim on our home and, unfortunately, I had put off getting the check cosigned until the last minute. An issue arose as part of a minor miscommunication in terms of where the check was to be forwarded for endorsement.To make a long story short, I feared that this miscommunication and misdirected check coupled with my procrastination were going to result in the check expiring and a huge hassle on my part to go through the process again. Mr. Inkman nor his branch were in any way involved with my account or account management, yet, the check inadvertently ended up in their draft loss department and I feared this would further delay things. I was a bit frantic.One of those that I emailed was Mr. Inkman. In an era when customer service is not as valued as in the past, I was very skeptical I would meet the deadline. But, to my surprise, Mr. Inkman took it on his own to personally get things done and get the issue resolved. It appears that he tracked down the overnighted check personally, directed it for signature, packaged and overnighted the check back to me. All the while remaining professional and pleasant and providing consistent email updates on the status. It doesn't even look like he delegated, rather taking the initiative and seeing it through on his own.To me, that's not just doing a job, that's going above and beyond in terms of leadership, professionalism, and customer service. We could not be more happy. And, as a further sign of good will, the Fairway CEO actually emailed me personally to follow-up and assure resolution. Been very happy with Fairway since my refinance, Mr. Inkman's efforts only further reinforce that opinion.

Samer Fallouh

15:01 15 Nov 23

Debbie Salas

21:47 03 Oct 23

This transaction probably would not have happened without Michael. Whenever we hit a stumbling block, he found a way around it! He kept us informed and was a positive light all the way through to the end and beyond.Thanks

Eric Kieffer

22:46 16 Aug 23

Did business with Michael about 20 years ago and he was happy to help us again. He and his team did a great job. See you in another 20.

What You Can Do Now to Prepare for Mortgage Rate Drops

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