Tips for Getting a Lower Mortgage Rate
Getting a good interest rate on your mortgage is a good way to save money in the long run. Interest rates may fluctuate with the economy, but there are some things you can do to get the best rate possible.
Start by keeping good track of your finances long before you think about hiring San Antonio movers. Save documents such as tax returns, investment account information, and bank statements. Keep accurate records about any assets you own. Be ready to explain any larger than usual sums of money that you have deposited. The more accurate and knowledgeable you are about your finances, the more confident the loan officer will feel.
Next, save up a substantial down payment. The required down payment can range quite a bit, but even 3% of a mortgage can be hard to come up with on the spur of the moment. On the other hand, setting aside a portion of your monthly budget as savings is a good way to prepare for making the monthly mortgage payment.
Work to reduce your debt to income ratio. Lenders typically feel more confident if you can show that you’ll have plenty of money each month to pay your mortgage. This confidence often translates into better interest rates.
Keep track of your credit score. Obviously, a good credit score will help you to get a better interest rate. If you are prepared with a copy of your credit history and your credit score, you will be able to work on improving your credit if necessary. If your credit is already good, then knowing your score can prepare you to ask for lower interest rates. It is easy to get a copy of your credit report. Contact one of the three credit reporting agencies. It is often possible to get these records for free.
One mistake that excited home buyers make is messing up their credit while they are in the loan processing stage. Anticipating their new home, some prospective owners rush out and make large purchase of furnishings. They may open new credit cards or take out a car loan. Any of these things can mess up your credit.
Brush up on your mortgage pricing skills. There are good mortgage loans and there are loans to avoid. Although the mortgage rates may look the same, one loan may have points or fees that make the price of a loan shoot up. These fees may include the interest rate, discount points, origination charges, rate-lock fees, and third party fees.
Getting pre-qualified is a good way to approach real estate agents. This gives the agent a good idea of the type of home you can qualify for and many agents will expect you to be pre-qualified before they are ready to work with you. This step will also help you to avoid looking at homes that are well out of your price range.
Be aware your rights as a borrower. Recent changes affecting mortgage rules will affect home buyers and even current home owners.
Any steps you can take to improve your credit and increase your knowledge of how the mortgage process works with help you to get a better interest rate. The day that your San Antonio Movers arrive should be one that is filled with excitement – without any hesitation regarding your new interest rate.