What Can You Do In Advance To Get A Better Mortgage Rate

What Can you​ Do in​ Advance to​ Get a​ Better Mortgage Rate?
When it​ comes time for you​ to​ think about getting a​ mortgage,​ you​ should know that there are some things that you​ can do to​ help yourself get a​ better deal .​
In most cases,​ they can be performed over a​ few months,​ but will prove their worth in​ savings over the​ term of​ your new mortgage .​
Here are some of​ those things .​
1 .​
Look Over Your Credit Scores
You need to​ get a​ copy of​ your credit report from the​ big three (Equifax,​ Experian,​ and TransUnion) and look them over for wrong entries .​
It is​ not uncommon for items to​ be mistakenly reported on​ a​ credit report .​
It will only take,​ however,​ one item to​ adversely effect your credit score .​
Bring it​ up to​ where it​ should be by trying to​ correct anything that is​ not where it​ needs to​ be .​
2 .​
Raise Your Credit Levels
If you​ find that your credit really is​ not at​ the​ level where you​ feel it​ could be,​ take some time (if you​ can wait) and raise it .​
This can be done through credit cards that report to​ the​ credit bureaus,​ taking out short-term loans and paying them off on​ time and quickly .​
This could be a​ key factor in​ getting a​ mortgage worth having .​
The interest rate that you​ will be able to​ get is​ largely based on​ your credit scores .​
Generally all three scores (or more) will be averaged and that is​ the​ figure that the​ lender will base the​ calculations on​ .​
3 .​
Reduce Your Total Indebtedness
It is​ always a​ good idea to​ reduce your indebtedness before applying for a​ mortgage .​
While you​ can have indebtedness,​ and even bad credit,​ you​ get the​ best rates when your indebtedness is​ about 28% of​ your income or​ lower .​
Having more than this will limit the​ size of​ your mortgage possibly more than you​ want .​
While it​ may be possible to​ get a​ different kind of​ mortgage,​ such as​ an​ ARM,​ it​ may not be the​ best in​ the​ long run - depending on​ what kind.
Reducing your debt will prove your ability to​ pay .​
You can pay off some credit cards and other small debts by consolidating them with 0% APR interest credit cards for their introductory offer,​ but you​ really don't want to​ close all of​ those credit cards .​
Leaving one or​ two open,​ perhaps even with small balances,​ could be more helpful to​ your credit rating than closing them all down .​
4 .​
Get a​ Larger Down Payment Ready
This will help you​ tremendously by reducing the​ overall amount that you​ need to​ borrow .​
The more that you​ can put down means that you​ are less of​ a​ risk to​ the​ lender .​
They will trust you​ more and give you​ a​ lower interest rate .​
Your goal should be somewhere in​ the​ vicinity of​ about 20%,​ if​ possible .​
Another way to​ save when you​ actually start shopping around for your mortgage is​ to​ compare a​ number of​ mortgage quotes .​
Look for the​ best deal after you​ understand the​ terms and your various options .​
Even if​ you​ do all of​ the​ above to​ help get the​ best rate,​ you​ could lose it​ simply by signing on​ to​ the​ wrong deal - so be careful.
What Can You Do In Advance To Get A Better Mortgage Rate What Can You Do In Advance To Get A Better Mortgage Rate Reviewed by Henda Yesti on July 04, 2018 Rating: 5

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