Getting a good mortgage rate depends on factors such as your personal circumstances, the institution you are dealing with and who is handling the mortgage transaction. Being in good financial shape and having steady, reliable income are major factors that can work in your favour when shopping for the best rates. Also, you need to have an experienced, knowledgeable professional who can negotiate on your behalf. If you are dealing directly with a financial institution that is providing the loan, you will have less negotiating power and you won’t be aware of all the loopholes. Here are a few steps you can take to secure the best rates.
Improve Your Credit Score
Ideally you should be debt-free when trying to secure a mortgage, but if you are in debt and managing it well (making your monthly payments and paying off small loans), then that will have a positive impact on your credit score.
Shop Around
Do research on as many institutions as possible and compare apples to apples. Don’t focus only on interest rates, but also the fees. Some institutions advertise their loans as “no fee” but the fees are factored into the interest rates.
Get in Touch With a Mortgage Broker
A qualified mortgage broker is skilled at finding the best rates. Ask for referrals if you don’t know any mortgage brokers. If you are considering one, then check that person’s credentials. Talk to previous clients and search for them in the directories. Find out as much as you can about the broker.
Find Out What Documents are Needed
Mortgages require extensive documentation, so know ahead of time what these documents are so you can obtain them. Some documents are easier to produce than others, so give yourself as much time as possible if you will have to do some extra legwork to get them. A broker can simplify this process by giving you a clear checklist of which documents are required.
Don’t Rely Exclusively on Automated Machines/Software
While technology provides a quick way to see if you qualify or not, it should not be the final decision maker. Talk to a person so you can get something more than a yes or no. If, for example, you get rejected despite having a good credit score, then you should know why. Maybe you need to try for a smaller home or increase your savings. A mortgage broker or loan officer can advise you on these things.
Getting a mortgage is not as easy thing to do, but if you do your homework, ask the right questions and get professional help, you stand a pretty good chance of getting the best rate for your situation. For further information on how to get a mortgage, talk to professional brokers. They can advise you on which institutions to approach and negotiate on your behalf for the best rates.
