Friday, July 24, 2009

How to Get Good Mortgage Rates - Tips For Getting the Best Mortgage Interest Rates on Your Next Loan

Do You Want To Get Good Mortgage Rates?

Everyone wants the best mortgage rates that they can qualify for but many people are not sure how to actually get those rates. Follow these short tips in order to secure really great deals for your home financing.

Your Current FICO Score - One of the biggest factors that will affect your final mortgage rate is your credit score. Knowing what it is before you refinance is very important to getting the best home loan rates. The ideal situation is you having a credit score of close to or over 700, if possible. If it's not anywhere near that number then consider beginning to pay off your credit card debt and other debt and be mindful of not missing any payments. These will help boost your credit score.

Proper Documentation - Before applying for financing, always be sure to keep tax records, pay stubs/receipts, and other income streams well documented. Do not give your lenders any reason to be suspicious about the way you produce income on a monthly basis or your loan could be denied or rate increased.

Down Payment - A larger down payment is sure to bring your costs down. A 20% down payment on a new house will save you on costs in the long run and eliminate any costs associated with mortgage insurance. It also reduces risk for the lender who will reward you with a low mortgage rate on your loan.

Shop Around - Call all of the banks in your area and give them your credit score, the size of the loan, the value of your home and the amount you want to pay up front (down payment). Get the initial quotes from the banks then call around and compare until you find the best deal.

By Andrea D Johnson

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