Do you want to apply for a mortgage loan in Houston to realize your dream of owning a home? Are you wondering how to get the lowest rate? Well, you are not the only one. As receiving a low interest rate on a new home or property can save thousands of dollars over the life of a home loan, homebuyers always try to get the lowest mortgage rate.
But while all are trying to achieve the same objective, how to ensure the lowest mortgage rates in Houston and save a ton of money? Well, there are certain things that can help you with this. Here, we have put together a few things that can help you to find the lowest mortgage rate.
The primary thing that you can do to get the lowest mortgage rate is to shop around. It includes your own bank or credit union, and online mortgage lenders. A good combination of banks, online lenders, credit unions and others will give you a good sampling of what is there for you. Even a minimal difference in the rate of interest or other terms can translate to huge savings on a loan over the period of time, especially if the loan could last for 30 years. Doing your homework and shopping around can really work here.
Educate yourself to negotiate a better rate
Being informed is a key advantage when looking for the lowest mortgage rates. And the ideal way to educate yourself is to research. Your research will make you aware of the mortgage market in general and specifically about lenders who are the perfect fit for your profile. Use this information to negotiate the lowest rate possible. If you have solid credit and a good income, lenders would like to get you as a client. If you have a relationship with a bank, take the best deal you have found and ask them to match it. If they view your relationship with them as valuable, they will accommodate you.
Boost your credit score
The lowest mortgage rates are given to the most qualified borrowers. And to be a highly qualified borrower, you need to have a high credit score. Those who have an 800 or more FICO score are considered to be the most desirable borrowers. So, before you shop for a mortgage, take some strategic steps to improve your credit score, including paying your bills on time, paying down your outstanding lines of credit, checking your credit reports, correcting errors, etc.
Save for a big down payment
The borrowers who pose the least risk to lenders will receive a better rate. For conventional loans, having a 20% down payment will excuse you from paying the cost of private mortgage insurance (PMI). It will automatically lower your borrowing costs. A bigger down will give the impression that you have “skin in the game”. A lender will give you a better rate when you give a substantial down payment as it will be viewed as a better risk than someone with little or none of their money involved.
So, follow these things and opt for a professional mortgage lender to get a home loan at the lowest interest rate possible.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.