Shop, study and secure.

Mortgage rates can easily yield thousands of dollars in your savings if you invest your time in not only comparing rates but also strategically shop to find the lowest-rate loan for your financial situation. Here’s what to do:

  1. Don’t get carried away with advertised rates to choose a lender

You might get swayed by the rates advertised by most banks & financial situation but you may not land up getting their best rates basis your situation. Because advertised rates don’t reflect your situation. In fact, online rates almost always represent a perfect borrower — one with excellent credit, low debts, and a 20% or larger down payment.

To get the best rates, you have to be the best borrower too. Unless you meet these criteria exactly, your own interest rates will be different from the ones you see online.

To find your “real” best interest rate, you need to apply for rate quotes with at least 3–5 lenders. This involves filling out a pre approval application and providing:

  • Personal contact information
  • Personal IDs like a driver’s license or Social Security number
  • Details about the property you’re purchasing or refinancing
  • 2-3 months’ worth of bank statements
  • Statements for retirement accounts, investments, and other assets
  • W-2 or 1099 forms (for self-employed borrowers)
  • Recent pay stubs

Your lender will also run a credit report and pull your credit score. Your credit history has a big impact on the rate you’re offered, so keep a check on your credir score and take corrective measures if required.

You can typically apply for a rate quote online, which makes this part of the mortgage process relatively quick and easy.

  1. Don’t accept the first mortgage rate offer you get

Don’t hurry and accept the first offer even if you feel that time is of the essence, it’s important to assess the rates other mortgage lenders come up with. Interest rates and lender fees significantly impact how much you’ll pay, so it’s really important to make sure you’re getting the best possible deal or else you end up saving less for the future.

If you settle for a higher rate in a rush, you might repent later when you see better offers. Knowing how to shop for mortgage rates can help you avoid this costly mistake.

  1. Don’t take lender recommendations at face value

It’s good to inquire with lenders your family member or friend suggests owing to their good experience with them, but explore other home loan options as well since your circumstances are different and you need to chose loan which suits you.

Your credit score may be better or worse, and you may be looking for different loan products. Depending on a lender’s priorities — they all favor certain types of borrowers — it might not be as competitive for you as for your friend. So dig around a bit before applying.

  1. Don’t default to your bank because it’s easy

While considering on mortgage rates , you might be tempted to keep all your financial dealings with your current bank for the sake of convenience.

However, please check if they’re offering the best rate, considering you to be their priority customer, the way you are giving them priority.

To understand this you need to look for other options and if they are not offering you the best rates or the right loan program for your situation, you’re actually better off securing a mortgage from a different lender, that might be a bank or an online lender.

  1. Don’t be shy to negotiate

Negotiate with the lender you chose before you finally accept the offer. Believe it or not, lenders have control over the rates and fees they offer, and they’ll often negotiate to get your business.

Even if a lender can’t go low on rates, they may be able to provide other discounts or incentives that make the loan worth. In a way by lowering your origination fee, for example, which could reduce your closing costs significantly.

“Thanks for reading this article and for a hassle-free experience of purchase/sale of a home feel free to get in touch”.