Find the Best Mortgage Rates in your State
Posted on April 1st, 2014 by Underwood Mortgage Group
Simply put, do your research when it comes to finding the best mortgage rate in your state. The first step is to get your credit scores so that each time you go to a new lender you can provide it and they won't have to pull it up multiple times. Multiple credit score searches can ultimately lower your score (that's no so great). Before you go to different lenders, narrow it down to three options based on their customer service. You want to ensure great service and one of the best ways to find this out is through referrals of friends and family. Now, go out and compare in person.
When looking for great mortgage rates you need to consider how much you can afford each month. Create a budget so that when lenders give you information to compare loan terms, you can make an informed decision on what best fits your needs. Once you have found the mortgage rate for you, timing is key because a rate lock will only guarantee you this interest rate if the loan is bought within a specific time period (usually 60 days). After that time period, the rate can rise. At this point a mortgage calculator can be your best friend to compute your monthly payment at different rates.
Make sure to compare a variety of mortgage institutions, such as a direct lender, credit union, or a community bank. Ask about different loan fees. When you have everything figured out, decide on when you want to close and your intended target date.
Clean up your credit before you go looking for a mortgage. Lenders want to give great rates to someone who has a clean history. Work with a credit specialist to get your financial situation on track. Many agencies offer free credit counseling, which can really benefit those that are on a tight budget and can't afford a credit specialist.
Take. Your. Time. If you rush the process of finding the right institution for you mortgage, you will most likely end up with a higher rate than you want or expected.
Don't hide anything from your lender. Transparency will only help you.
Most low mortgage rates are the outcome of a large down payment. This gives you negotiating power. Even if you are on a tight budget, saving for a bigger down payment will help you in the long run.
Posted in Real Estate Advice