How to Get a Better Mortgage Rate

Finding the right mortgage at the best rate is a very important part of the home buying process. There are several ways you can help yourself look more desirable to a lender. The less risk they feel they are taking, the better is pays off for you in the end.

Difficulty: Challenging

Instructions

Things You'll Need:

• Internet
• Lenders

1. Run a credit report on yourself. This is free once a year at annualcreditreport.com You can view your outstanding balances and any currently open accounts. Make sure the information is correct and spend the extra $10 to buy your credit score.

2. Clean up your credit. If there is any information that is incorrect, get it fixed before loan shopping. Know your scores, this will help the lender know up front if you qualify without them having to pull your credit. Each time your credit is pulled, it takes a hit and the score gets lower. Do not let each lender pull your credit when shopping.

3. Look for low down payment and low closing cost options. The closing cost is where the lender makes their money. They are usually negotiable, so don't be afraid to ask for a little break on the closing costs.

4. Look for first time home buyer or special programs. Get pre-approved after you find the best rate and terms. This will give you leverage when you actually start house hunting.

Tips & Warnings

• Shop for rates.
• Don't over pay closing costs.
• Credit directly effects your rate. Make sure you know your rating and why it is what it is.

[westernmom]

on 5/11/2009 Good advice. Especially on closing costs! 5*