How Can I Get the Best Mortgage Interest Rates?
By Kevin LandisShop Around For the Best Rates
Don’t just take the first rate offered. Shop around by comparing price quotes from dozens of companies you find online, in a phone book, or newspaper advertisement. Compare interest rates and fees. You should be able to find a loan with fees of $1,000 or less. If the fees are higher, you aren’t getting the best deal.
Make Sure Your Credit Rating is the Best it Can Be
Get your credit scores online from the three major credit-reporting agencies: Experian, Equifax, and TransUnion. You can get them from annualcreditreport.com. Are there any mistakes? If there are, you will not be able to get the best mortgage interest rates. Make note of mistakes. Mail a letter to the credit reporting agency, asking them to investigate. Mail any proof you have of errors. You can find a sample letter online.
Pay Your Bills on Time
This is by far the biggest part of your credit score, amounting to 35% of your score. This demonstrates you will pay your mortgage on time. If you do so, you will have a better chance of getting the best mortgage interest rates.
Pay Your Credit Card Debt Down as Far as Possible
This will show lenders you are responsible. You will have a much better chance of getting the best mortgage interest rates. Make sure your debt-to-credit ratio, the amount of your credit you have used, is less than 50%.
Make Sure You Do Not Apply for Other Credit Cards or Loans
What more can be said?
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- Are Mortgage Interest Rates And Credit Scores Related?