Bellingham WA Weekly Financing Tip & Rates

Getting a real estate loan is about a lot more than the amount of your downpayment and your current income.  Two factors that can get your loan denied are

•  Excessive debt.  Lenders measure your debt load by the DTI – debt to income ratio – which is the amount of your monthly payments divided by your gross monthly income.  The typically allowable level has dropped from 55% to 45%.  Pay off the credit cards and other small debts before you apply for a home loan.  It will also improve your credit score, which will lower your interest rate!
• Declining Income.  This is particularly a problem for people who are self employed, because lenders are far more cautious with those borrowers.  If your tax returns show less income for the current year than for the prior one, the lender is likely to use the lower number, and in some cases discount it further if they believe the trend is down in your industry.   

 Home loan rates as of Wednesday, February 10 are in the following table.  For more details, or a custom quote, contact SidneyStonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com.  Remember that many variables come into play in determining the rate a lender will give a borrower.  If you are getting a rate quote from a lender who does not have all your information, that rate may not be real.

If you have other questons about financing, don’t hesitate to contact us and we will get you the answer.  If you are wondering, other people probably are as well.  For general financing and market information, check out our website.

For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!