Mortgage Interest Rates: Off The Sidelines and Into the Game
5 Tips for you when it comes to Mortgage Financing
15:13 16 March 2013
Have you been considering buying a new home but are just afraid of the whole process? Are you waiting for things to get better, hoping that mortgage interest rates will drop and the economy will improve?
Well, it might be a while! Here are some things you can do to put yourself in the mortgage game to win.
- Know what your credit rating is. It is absolutely awesome if you have great credit, but if you don’t, you need to know that before you try to get a mortgage loan. If your credit is not good you should take time to work on improving your credit score.
- Shop for a low interest rate from a lender that has a reputation for providing good customer service. This is a combination that can’t be beat. Don’t settle for less than both!
- If you have already met your lenders requirements and have been approved for a loan, do not make any purchases or open any lines of credit as that can change your credit rating. Recognize that until the loan has closed, any changes can potentially ruin a deal.
- If you are in a good financial position and your goal is to be debt free, consider paying off your loan early by going for a shorter term mortgage, say 15 years as opposed to 30. Be aware that this will mean a higher monthly mortgage payment, but you will pay your home off sooner and save thousands of pounds in interest.
- If you are a current homeowner who has tried to refinance in the past but failed, try again. There are many factors that may have improved since your last attempt which make work in your favor.
Your debt to income ratio may be better, your job situation may have improved, and you may have a higher credit score than before. It’s even possible that some lending requirements may have changed in your favor, so give it another shot.
Being prepared before you start the mortgage loan process will make things a lot easier for you in the long run, so know where you stand before you get in the game.