The difference between a great rate and a bad one is just several percentage points. However, the impact it has on the interest payable over the life of the loan could sum up to thousands of dollars.
Therefore, it is important to ensure that you get the best rate available in the market. Hoping for the best rate isn’t enough; you must do something about it. The following tips can help you:
This may sound like a no-brainer, but the number of borrowers who settle for the first lender they contact is high. Avoid this pitfall by shopping around to find the lender who is offering the best mortgage rate in Salt Lake City or elsewhere. Remember that a mortgage is a long-term commitment; therefore, you should take your time before you commit.
Improve your credit score
According to experts, your credit score will determine whether you qualify for a loan and at what rate. It is, therefore, important to ensure that your credit score is good. Fortunately, there are things you can do about it. Get your credit report, review every entry and have the errors corrected. Make sure your outstanding debts are paid on time. Holding all other factors constant, the higher the credit score, the lower the mortgage rate.
Keep your job
Most lenders will prefer a borrower who has a record of employment of at least two years from the same employer. They refer to these borrowers as low risk since they have a steady source of income. Because the lender is in the business of making money, a low-risk client is ideal for them. This alone can increase your chances of getting a mortgage at a favorable rate.
A mortgage loan is meant to allow you to own your dream house. However, when the rates are not favorable, the monthly installments and interest will be so high that it will be a major cause of your financial woes. The above tips will help you secure a great mortgage rate and a convenient payment scheme.