If you're in the market to buy a new house, you must be looking for the best mortgage loan that can assist you in realizing your dream. After the S&P downgraded the pristine credit rating of the US and cut it off to AA+, this decision has made the consumers and the investors wary about taking any kind of financial decision. Financial analysts are of the opinion that the credit downgrade will have a direct impact on the interest rates on all kinds of personal loans, debt consolidation loans, mortgage loans and even auto loans. The consumers are worried about their prospects of taking out a mortgage loan at a reasonable rate with the given economic conditions in the US. Nothing can be worse than settling on a mortgage loan that you can't afford. Though refinancing can be a good option when it comes to repaying your original mortgage loan, you must always try your best to choose the best loan in the market that offers you rates within your affordability. Here are some qualification criteria that you must consider.

An exceptionally good credit score: The most important thing that is checked before lending you a mortgage loan is your credit score. You must be aware of the extreme importance of this three-digit number when it comes to getting any new line of credit. Your credit score speaks for you and tells people whether or not you're financially worthy enough to take out a mortgage loan and make repayments on time. You need to have a credit score above 700 in order to get a loan with the most affordable interest rate in the market.

Shopping around: The best way in which you can grab a mortgage loan with the least interest rate and with the most favorable terms and conditions is by making a comprehensive market research. There are a number of mortgage loan lenders in the market and everyone will try to offer you with their loan as they need to stay afloat in this business. If you want to be wise while getting this loan, you must shop around in order to compare the mortgage quotes from various companies and then choose the one that suits your budget.

Your net worth or your income: Without enough income, it is impossible for you to repay the loan without falling back on the other debt obligations. It is very certain that you must be having a number of monthly debt obligations and now that you have to take out a mortgage loan, the loan lender will not allow you without enough monthly income. They will check all the sources from which you make money in a particular month and you have to show them your monthly payment stubs in order to take out a loan with a reasonable rate. You should look for boosting your monthly income if you need to get a loan at a covetable cost.

Your debt-to-income ratio:  The DTI ratio is yet another number that is important while taking out a mortgage loan apart from your credit score. The ratio between your monthly debt obligations and your monthly income shows whether or not you can easily repay them without putting a strain on your wallet. You must work towards lowering your DTI ratio so that you get a loan within an affordable rate.

Therefore, if you’re in the real estate market to take out a mortgage loan in order to get yourself a new house, make sure you follow the points mentioned above so that you can easily save money while taking the loan out. Manage your personal finances so that you can repay the loan on time without refinancing your home loan from a new mortgage lender.