Obtaining the Best Mortgage Rate is Easy
Regardless of whether you are looking at becoming a first time home buyer or looking to buy a town home or condominium, getting the best rate (often the lowest rate) is what everybody is looking for. In a market where the rates are dropping, buying a home is a good idea, but shopping around for rates can be nerve-wracking. In order to ensure that you are going to get the best rate possible, there are a few things you need to do.
What You Need To Do
You need to make yourself look like the ideal client by having a stable job, and business potential as this is what the lender is looking for. If you look like you are a stable person, meaning that you have been with your job for longer than two years, and you have paid all your bills on time, than you are more likely to get offered low rates since you are less likely to default. Business potential on the other hand means that your income is likely to grow, and that you will be looking for bigger possibilities in the future such as a bigger home or home improvement projects. Lenders want individuals who will bring in repetitive business because this is a profitable deal for them.
You also need to maintain and have an excellent credit score. Fixing any errors or misinformation on your credit score is relatively easy to do, and it ensures that everything is in order when you go to apply for a loan.
What Not To Do
One of the biggest mistakes that you can make is to apply for multiple loans within a short period of time. By doing this, it shows up on your credit report, and may tip off a lender that you are shopping around. If this happens, the lender is less likely to give you their best rate because they may believe you are wasting their time.