Whether you need a mortgage to purchase your first home or are simply looking into refinancing your existing mortgage, you absolutely must find the best mortgage rate if you want to make a positive financial decision. Let me help you by providing a few tips:
Shop around for the best rate.
Although we are in tough economic times and it is getting harder and harder to qualify for a loan (especially if you have less than perfect credit), you shouldn't settle for the very first mortgage that you find. Instead, you have to review rates from various lenders to find the best one for you. After all, financial institutes make a tremendous amount of money off mortgages, so make them fight for your business by bringing you the most attractive offer.
Clean up any credit inaccuracies before you applying.
Since the mortgage rate that you are quoted depends heavily on your credit history, it just makes sense to improve your credit score before you apply. You should pay down as much of your debt as you can, clear up any inadequacies, and make sure you pay your bills on time. By doing this, you will put yourself in a much better position for obtaining the best mortgage rate.
Conduct research about financial institutes and consider all your options.
Currently you can obtain a mortgage rate through a bank and even a private lender. However, to find the best mortgage rate you have to really understand the fine print. A private lender may have the best rate, but you may find that once they tack on all their hidden fees that the rate isn't really that low anymore. But just because it may be cheaper to go with a traditional bank, doesn't mean they are going to meet your needs.
Understand the different types of mortgages and their varying rates.
There are many types of mortgages including fixed, adjustable-rate, etc and each one of them offers various rates depending on the financial product. Make sure you understand the rates involved with the various types and choose the type that is best for your personal situation, including monthly payment, loan term, and APR.
If you are a first time homebuyer, don't miss your opportunity to take advantage of special grants and programs. If you have served in the military, make sure you look into a VA mortgage loan.