Home Loans In Metairie, Louisiana

Few places in Louisiana are as interesting as Metairie. Thanks to its unique charm, history, and eclecticism, this New Orleans suburb has become one of the hottest real estate markets in the metropolitan area.  

As of date, Metairie, LA, is a buyer’s market, which means that the supply of homes is greater than the demand. Given the current market trend, if you’re thinking of buying a home in Metairie, now would be the perfect time to do so!

How To Improve Your Chances Of Qualifying For A Home Loan 

Regardless of market trends, getting a mortgage loan to finance the purchase of a new home can be tricky, especially if you’re a first-time homebuyer. It is essential to prepare before applying for a home loan as much as possible.

Let’s go over what you need to know about qualifying for a home mortgage in Metairie.

• Examine Your Credit Score

One of the most important factors that lenders check when evaluating your eligibility for a mortgage is your credit score. Your credit score also determines the interest rate of your mortgage if ever your home loan application is successful.

Your credit score is a three-digit number that determines your creditworthiness, ranging from 300 to 850. The higher your credit score, the better your chance of obtaining a home loan with favorable terms. 

If you have a low credit score, work on improving it before approaching lenders. Start by settling any outstanding debt, paying all your bills on time, and being more mindful of how you use your credit. 

• Correct Errors On Your Credit Report

Your credit report includes essential information such as your name, address, social security number, and credit history. You must ensure that all of the data in the report is accurate and up to date.

If you find any errors in your report, file a dispute. Also, please wait for the new information to be updated before you begin looking for a home, as it can take weeks or months for credit companies to update the information on their databases.

• Reduce Your Debt-to-Income Ratio (DTI).

Your DTI ratio is determined by how much of your gross monthly income goes to debt repayments. Payments for auto loans, credit card bills, student loans, and other loans fall into this category.

Lenders look at your DTI ratio to see how well you manage your money. If you’re spending more than half of your earnings on debt servicing, lenders will see it as a huge red flag because it indicates that you’re heavily relying on debt. Reduce your DTI ratio by getting another source of income or paying off some of your debts.

• Save For A Larger Down Payment.

Ideally, you should be able to make a 20% down payment on your home loan because this will reduce the overall amount of your loan and allow you to avoid paying for private mortgage insurance. If 20% is too big, though, you can try for 10%.

Some mortgages, such as VA and USDA home loans, require no down payment. If possible, however, put down a substantial down payment. This will demonstrate to lenders that you are a serious borrower willing to put your own money into the investment and increase your chance of getting approved for the loan.

Metairie, LA Mortgage Lender 

Capital Home Mortgage is a direct mortgage lender in Metairie, LA. This means that we handle all aspects of the loan process, from application to financing. We take pride in providing our clients with a one-of-a-kind home loan process that offers flexible underwriting, competitive interest rates, and lower fees.

Get in Touch with Our Metairie Home Loan Specialists Today!

Purchasing a home is a significant undertaking, and there is always plenty to worry about.

For a hassle-free home loan experience, let the pros at Capital Home Mortgage take care of securing a home loan in Metairie for you! We’d be delighted to assist you in planning for your home purchase and providing any assistance you may require along the way.