Thursday, August 22, 2013

Tips on Getting the Best Mortgage Rate

There are many types of mortgages available when it comes time to buy a home and getting the best mortgage rate available is the primary goal for the consumer in the home buying process. There is a lot of prep work when it comes to getting a great rate, both on the side of the buying party and the lending party as well. Being prepared by showing yourself in the best light possible as a home buyer and finding the best rate to meet your budget can be easier when following the tips listed below:

Find a Reputable Lender

One of the best ways to find a reputable lender is by word of mouth. People who have had great experiences with their lenders have no problem referring the lender to others. Discuss with the lender the various types of financing options available and have the lender run the numbers for you with various mortgage amounts within your budget and what their respective interest rates for them would be. Doing some number crunching early in the game can give you a target to shoot for when looking for suitable properties.

Obtain a Credit Report

Once you make contact with the lender, have them run a credit report and obtain a copy for your records. Credit reports issued by lenders usually contain information useful for their purposes that other types of credit reports from other sources do not have.  It is always a good idea to have a current credit report in hand when speaking with various lenders so that your credit does not need to be pulled multiple times since each time a credit report is obtained; points are deducted from your credit score.

Do Your Homework

Once you have found a reputable lender and know what types of financing options are available, it is time to start scouting the market for the ideal home. Even though your lender has assisted you in early number crunching, the final amount spent will differ according to the purchase price of the house and the interest rate for the day you will close on the property.

Use a Mortgage Calculator

A mortgage calculator is a very useful tool when it comes to determining if a house is in the price range you desire.  There are many variables that can affect the final price of home and using a trustworthy mortgage calculator is the best way to ensure you are applying for a home that is within your budget. The most accurate picture of what the final price of a home mortgage will run can be a lot more accurate by using the Halifax Mortgage Calculator listed here.

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