How to Qualify For Best Mortgage Rates

Mortgage rates always take up a long time to deliberate and are often considered paramount to getting you the best deals in real estate. Any miscalculation can really put the entire calculations under severe strain and you can even end up defaulting if you have not got the rates that you are capable of handling. Mortgage rates are basically associated with the risk that a bank is willing to take as far as repayment of a mortgage loan is concerned. If the risk is high, the rate shall also be correspondingly higher. Hence, it is important that you make the bank feel that giving you the loan does not entail so much of a risk for them.

On order to qualify for best mortgage rates, there are a few conditions that you need to meet. Initially, it is a great option to shop around and check with banks and lenders as to the rates they can offer. Once you have been able to shortlist a few lenders who can give you competitive rates, it is time to fix any issues that you may find that hamper such a probability. This onus lies on you as a person, as most issues are concerned with your own personal finances.

To start with check your credit reports and make sure everything is in order. Any mistakes that you find should be immediately brought to the notice of the credit reporting company and the same rectified, with ample proof submitted to them proving your point with facts and figures. Then it is time to look at your credit score. If these are not impressive, go around making changes in your life style that can offset any negative remarks on your scores. Pay your bills on time for at least six months continuously, pay taxes, clear credit card bills and make sure that you have enough cash to show as a decent bank balance. This gives the lender enough confidence on you as a mortgagee.

You have to realize that lower and fixed rates are for people who have equity in hand (down payment options for home loans), good credit reports and scores as well as lesser loans to repay. A good income can also tilt the bank in favor of giving you good mortgage rates. If you do not have sufficient income to prove this stability, it is prudent that you apply jointly, along with your spouse, if she has an income. This will bloat the income to a respectable level and help you in availing lower rates.

The last twelve to eighteen months of personal financial activity will give the bank a good picture of the exact status of your personal finances. Hence, keep these time periods as clean as you can. Also, a competent and licensed mortgage broker can help you clinch good deals as far as mortgage rates are concerned.

Best Mortgage Rate – Is it Better to Pay a Larger Down Payment on Your Home?

With all the homeowners these days before being on their mortgages it is very hard to get the best mortgage rate on a new home because lenders have become very frigid and very strict about lending money because of what happened at the home mortgage crisis. There are however a few people out there that decided to go against the crowd and saying quite a large nest egg of cash and they have it laying on the sideline waiting to purchase a new home. Would it be wise for them to put between 40% and 50% down on a house to get the best mortgage rate? There are a few things that they would need to consider first before going through with such a large move.

The first thing to consider is do they have enough of an emergency fund to get them through the first year on top of this large down payment?

The second thing to consider is whether you have just gotten married or have you been married for quite some time and have a large family with many kids. If you are a newly married couple and have enough money for a large down payment on a house, chances are you have a better chance of getting through your first year and if you have the expenses of many children.

The third thing to consider is whether you intend to purchase that home as an investment or plan on living there for a long time. Right now there aren’t too many great investments out there in the housing industry and virtually every home you buy will be going down for at least the next 6 to 9 months. This is why a large down payment is best for someone who plans to ride out the current home mortgage crisis.

There will be many mortgage brokers that will advise against putting down a large down payment on a house as they will say this investment becomes dead money, but these are the same brokers that have been telling their clients that they should be refinancing as much gas as they can on their home and we have all seen where this practice has led us to. A large percentage of homeowners who bought into a low down payment or no down payment deal now wish they would’ve put a larger amount of money down.

Before making any investment in a home you should always consult your investment advisor as they are the true experts.

Best Mortgage Rate – You Can Get Them With Ease!

We’ve found the secret to getting the best mortgage rate! The secret is having a good credit score. It’s as simple as this. If you’re able to impress your lenders with a pleasant credit score, they’ll want to give you the best deal. So, before you knock the doors of lenders, please take a look at your credit score.

A bad credit score is not only unpleasant to the eyes, but also repels the lenders. Who’d want to deal with someone who does not care about his or her credit history? The worse your credit score, the riskier you would be a client for the lenders. They would think ten times before quoting the current mortgage rate to you.

Knowing Your Credit Score

The first step that you need to take is request a copy of your credit report from one of the three major credit bureaus – TransUnion, Experian, and Equifax. They are obliged to send you a free copy. You can even get your report through the internet.

Why credit report? Well, it’ll answer your queries about credit score, your debt balance, and untapped credit lines; plus the position of your credit card accounts and loans. Your credit score should lie between 300 and 850. Lesser than this, and you get a squirmy look from your lenders. Those having a credit score of above 700 can rejoice. This is the score that attracts the best rate!

Alas! Not all have such a score to celebrate. A majority of the people have scores between 100 and 650. Forget second mortgage rate, they’re not able to get the best mortgage rate for the first loan. Don’t lose heart. You can do something about your poor credit score.

But what? Increase it! How?
Read on…

Improving Your Credit Score

Improving credit score doesn’t mean completely getting rid of debts. Oh, yes; but, you could very well do away with those credit cards! Stick to just one card. Follow this rule like the Bible. Only then can you achieve your target of good credit score. The catch is to build your credibility as a payer. This increases your chances of getting a loan with good rates.

Pay your monthly payments on time and regularly. Keep light balances on your credit card. Gradually, you’ll notice an increase in your credit score. Best mortgage rates would soon be your right to get.

Good credit holders also have the advantage of adjustable mortgage rate. See, how important credit score is! If you’ve been spending lavishly on your credit cards, it’s time to start working towards improving your credits. Only then can you achieve the best mortgage rate.