Mortgage rates have dipped to a record low for the second time in as many months amid the Coronavirus Pandemic, giving home buyers a bright spot for financing a home purchase right now. The 30-year fixed-rate mortgage average reached 3.23% according to Freddie Mac for the week ending April 30th, that’s the lowest it’s been since they began tracking rates in 1971. To put it in perspective, a year ago the average rate was 4.14% and in the wake of the recession in November 2012, the average rate for a 30-year fixed-rate home loan fell to 3.31%.
Some lenders and banks have begun tightening the qualification standards for prospective home buyers. With the current economic environment, mortgage companies have put in some tighter restrictions but that doesn’t mean you won’t qualify. What rate you are offered will depend on a number of factors, including credit scores and income.
How to Qualify for a Mortgage
If you’re thinking about buying a home this year, a lender will help you determine the best loan program for you based on borrowing guidelines and your information.
- Your monthly income
- The sum of your total monthly debt payments (including auto loans, student loans and credit card minimum payments)
- Your credit score
- How much money you have for a down payment