Everyone agrees that the easiest way to secure a low mortgage rate is to have a good credit score, a low debt-to-income ratio and to put down 20% for a down payment.
Beyond this, there are a plethora of articles out there on how to get the best mortgage rates. Sites like Bankrate and MSN Money share their opinions freely. These opinions include:
- Know how much house you can afford before looking for a mortgage
- Contact a lender to get your credit scores
- Get all the necessary financial paperwork together, before meeting with a lender, including: tax returns for the past two years, W-2 income statements, your two most recent pay stubs, most recent credit card statements, most recent bank and investment account statements, divorce decrees and child support documents, your budget
- Answer the following questions: How large is your down payment? Are you buying a single family home or a condominium? Are you refinancing or purchasing?
- Don’t hide flaws such as credit problems or fudge on information
- Get a referral from someone you trust.
- Compare with your lender Federal Housing Administration and conventional financing as well as various loan terms.
- Contact a mix of financial institutions (a direct lender, a regional bank, a credit union and a national bank, for example)
- Decide when you want to close as the length of your lock-in period will impact your mortgage rate.
- Ask about fees.
- Consider whether you should pay points.
- Call lenders around the same time on the same day, as mortgage rates fluctuate constantly.
- In the end, remember that it’s not just about getting the best value loan, but also about getting the right loan for you and your family, with no surprises.
If you are overwhelmed by all of this information and afraid of a DIY process, we can help you! At Best Mortgage Rates Inc. we assist prospective home owners by allowing them to compare rates from hundreds of lenders instantly. Our easy-to-navigate system allows you to search for mortgage rates across the country. You can tailor your search to fit your unique needs- search by rate, APR and payments today! We believe that when you compare, you save.