Looking for a Good Mortgage Rate is Easier with Guidance

Realize that a good mortgage rate will be different for everyone, and this will depend on credit score and down payment size, among others.


good mortgage rate

Whether you’re buying your first home or downsizing for retirement, applying for and getting a mortgage can be an arduous and daunting task. One of the biggest challenges, no matter how many times you’ve gone through the process, can be finding a good mortgage rate.

Even for people going through the home-buying process for a second or third time, there is still a level of uncertainty. You always want to make sure you’re getting the best possible rates on your mortgage, and sometimes it’s not very clear as to whether or not you can do better.

Some banks and lenders will provide the same mortgage rate to anybody they approve. Still, there are certainly ways that you can shop around and find better rates for your mortgage, and it is worth the time to do so.

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Finding a good mortgage rate is easier with good credit

Of course, if you are a trustworthy borrower, a lender is more likely to give you a favorable rate. But, what does that look like exactly? Yes, your credit score will have a lot to do with it, but it is more important to understand the things that add to your credit score.

Suppose you have negative history on your statement. This isn’t going to help. Negative history could include late payments, being in collections, prior bankruptcies, and more. With that said, none of these things will necessarily disqualify you from getting a reasonable rate if the foundation around these mistakes is still strong.

Having a sizeable available credit limit can be to your advantage, and using your credit is essential as long as you always pay your bills on time. If you’re concerned about your credit score, be sure to review your report and check for mistakes. Sometimes errors can happen, but you can usually correct them by contacting the agency. Correcting mistakes is one of the quickest ways to improve your credit score.

Know if you qualify for a good mortgage rate that allows for 100% financing

If your concern is more about down payments than interest rates, there are mortgage programs that enable 100% financing. You may be eligible for these programs depending on your background (the VA loan is available to people with two years of military service) and where you are looking to buy your home (USDA loans are available in qualifying rural communities).

Besides these no-money-down programs, there are FHA loans available with as little as 3.5% down payments. Make sure to review the qualifications of where you’re buying your home, and if one of these programs may be available for you. They will change your interest rates on your mortgage.

Explore multiple lenders to get a good mortgage rate

It does take a little work, but a simple way you can improve your chances of getting a great mortgage rate is by shopping around. When you only look at one lender, you’re closing off any other potential offers. It may very well be that your first lender is the one you end up going with, but you’ll understand how things work and what you should expect by shopping around.

With experience comes knowledge, and the more information you have around your mortgage, the better decision you will be able to make.

What types of mortgages are you currently considering?

Free Now!

Securing the best mortgage interest rates can save you a lot of money. Find out the best ways to get low interest rates … and other money-saving tips—revealed in this FREE report, Mortgage Interest Rates: How to Find the Best Interest Rates and Other Tips for Securing Low Mortgage Payments.

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