On my previous Blog “3 Ways to Get an Approval on that Mortgage” I’ve mentioned 3 component that will allow you to get a mortgage. Those are having a Stable Income, Good Credit Score or History and No Large debts. These components served as your guide into getting a mortgage. Now I’m going to blog about how to get a great mortgage rate.
All lenders will review your financials and this will serve a big factor to consider your mortgage loan. Well here’s how to get Better Mortgage Rate.
- Good Credit Scores
Once a lender review your financials and sees that you pay your dues on time, you don’t have debts, you have a good credit score and have a steady flow of income, then this qualifies you to get a better rate in your mortgage because of your great credit score and that you are trust worthy.
- Income Stability
In order to pay your loans, you must have a budget and a steady flow of income. Lenders requires a steady employment of 2 years in the same company. Being jobless gives the lenders the doubt whether you can even pay your loan or not. They would check if the flow of your income is suffice to cover up for your loans and won’t cause you to miss any payment. Having a stable and steady job means a better opportunity for you and a steady flow of payment to your loan.
- Large Down payment
For lenders the larger the down payment the better. The bigger the down payment, the deeper the initial equity stake is and this will pose a lesser risk to the lenders.
- Savings or Cash Reserves
The lenders will also check if you have savings that can cover your monthly mortgage at least for the first two months. Cash reserves are your money in your savings or checking accounts, deposits and so forth. However this does not include your retirement money or funds. Having enough cash or savings gives the lenders a peace of mind that you can pay for your mortgage.
- Have your answer ready and always provide the same information.
Lenders would ask you a lot of question. Especially about your financials standing and if you will be capable of paying the mortgage. Based on your answer the lender can provide an accurate quote for your rate. Providing the same information also avoids confusion and allows the lenders to accurately rate your quote. Here are some questions often asked.
- quality of your credit
- location, type, and use of your property
- Amount or size of your down payment
There are a lot of investors, establishments and firm that provide mortgage loans. Do not settle for the first establishment you see, compare all the rates each provides and the benefits you’ll get once you apply and got your mortgage. There are a lot of ways to find out what each company offers. Check it online, call them, or visit them. Ask about the fees involved and process. Knowing all of these will give you a lot of options and leverage on where you can get a better deal and will benefit you more. This will also allow you to find which mortgage loan best suits you and your payment capability.