Tips on How to find a Better Mortgage Deal
You can save thousands of dollars on your mortgage payments by exploring your options and shopping around for the best offers. Lending norms are strict, but you can get a great deal by doing your homework and negotiating with lenders. Want to get a mortgage loan? Get free, no-obligation mortgage quotes from the top lenders now.
Study your credit report
Obtain a copy of your credit report and check to see if it is correct. You can dispute any information that is incorrect and have it rectified. Any improvement in your credit rating will enable you to qualify for lower rates and fees.
Have a very low credit rating? It may be best to focus on improving your rating before you apply for a home loan. Try to repay your existing debts and pay every bill on time. Remember, a single delayed payment can impact your score.
Use an online mortgage calculator to assess your options
An online loan calculator will help you to make the right choices. You will find one on the websites of most lenders. It will enable you to decide about how much you can really afford to invest in a home.
Think about an affordable down payment and how much you can pay every month without upsetting your household budget. While extending the repayment period will enable you to reduce the monthly payment, this will involve making much larger interest payments.
Compare quotes from reputable lenders
Ask a few reputable lenders to provide quotes in writing for the same type of loan. Consider all the costs associated with the loan, including closing costs and points. Take notes to avoid forgetting important details, and seek clarifications if you are not able to understand anything. Be prepared to negotiate hard on the basis of quotes provided by other lenders.
Worried about your credit rating?
With a low credit rating, it will be harder for you to get a mortgage loan with affordable rates from a traditional lender. Find out about the programs of Fannie Mae and Freddie Mac, which can help you to qualify for lower mortgage rates.
Find out about loans insured by the Federal Housing Authority (FHA), which have more relaxed lending criteria. Contact a lender who is approved by the HUD to find out about loans that are insured by the government.
Can you afford to make a larger down payment?
You will have more options if you can afford to make a bigger down payment. It will be easier to get a loan and lenders will offer lower interest rates. If you cannot afford to make a large down payment, find out about the down payment assistance programs that are offered by states and municipalities.
You may be able to qualify for a grant or a loan that will be forgiven if you stay in the home for a minimum of 3 years. Get free, no-obligation mortgage quotes from the leading lenders now.