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What Questions Should I Ask When Shopping For A Low Mortgage Rate?

By Stacy Williams

There are many questions that should be considered when shopping for a low mortgage rate. With the economy in the decline, it is important to save money wherever we can.

Consider the following suggestions:

1. Ask if a down payment will be needed. If so, how much will be needed. Ask will putting more down reduce your rate.

2. Ask if the low mortgage rate will be fixed or will it be a variable rate ( which means it will fluctuate.)

3. Ask how many lender points you must pay. Usually the norm is 1-1 1/2 points.

4. Ask for the most current rates. Then shop around to see who is offering the best low mortgage rate.

5. Ask if you can buy down your rate. Some lenders offer a lower mortgage rate with a slightly larger down payment.

6. Ask your lender should you pay off any of your outstanding debts. Sometimes by paying down a credit card or a loan, you can qualify for a better rate.

7. Ask your lender for different scenarios when applying for a loan. For example, if you do not have great credit, ask your lender if you find a co-signer will that better your chances of obtaining a low mortgage rate.

8. If your spouse has poor credit, ask your lender if you can qualify for the loan as the primary applicant.

9. Ask you lender for a Good Faith Estimate. This will break down all your your out-of-pocket expenses and give you a good idea of what it will cost you to buy a home. Ask your lender to explain “pre-paids” and what is the exact amount expected from you to bring to closing.

10. Ask your lender about different lending programs. Depending on the program, you may be able to obtain a low mortgage rate.

11. Once you have decided you like your rate, ask you lender to lock it in. Rates usually fluctuate daily; the rate you were quoted one day, could be higher the next. Lock it in. That way, you will not have to worry about the rate going up. Make sure you ask if that is the best rate you qualify for.

12. If you don’t understand something, don’t be afraid to ask the lender to clarify. Asking questions will help you feel secure with your decision.

13. If you don’t like your rate, call around and talk to other lenders.

14. Ask the lender if there are any incentives that come with using them as a lender.

If you remember these suggestions when trying to find a lender, you will have a great experience and hopefully find a great low mortgage rate!

Happy home hunting!

Related posts:

1. What Questions Should I Ask When Shopping For A Mortgage Rate?
2. What Questions Should I Ask When Shopping For A Mortgage Rate?
3. What Questions Should I Ask A Mortgage Lender?
4. Should I Lock In My Loan Rate When I Apply For My Mortgage Loan?
5. Should I Repair My Credit Before Shopping For A Mortgage Rate?