Ways to Land a Great Mortgage Rate
Getting a good mortgage is dependent on several factors, including your debt-to-income ratio, employment history, and your credit score.
Improve your credit score: Your credits score is a critical factor in determining the interest rate you’ll be offered. A higher credit score usually translates to a lower interest rate. Pay your bills on time, keep your credit utilization low, and correct any errors on your credit report.
Reduce your debt-to-income ratio: Lenders prefer borrowers who have a low debt-to-income (DTI) ratio, which compares your monthly debt payments to your income. Try to pay down your debts before applying for a mortgage.
Shop around: Don’t settle for the first mortgage offer you receive. Compare rates and fees from multiple lenders to find the best deal.
Consider a shorter loan term: A shorter loan term, such as a 15-year mortgage, typically comes with a lower interest rate than a 30-year mortgage.
Get pre-approved: Getting pre-approved for a mortgage can give you a better idea of the interest rate and loan amount you qualify for, which can help you make a more informed decision.
Remember that getting a good mortgage rate is just one part of the homebuying process. Be sure to consider other factors, such as a property’s location, condition, and potential for appreciation, before making an offer. This is where your agent can be a major resource! As an expert in your local market, I can help you to navigate the market and feel confident about making an offer before you do so.
If you’re looking to make a move, contact me today and I’ll get you in touch with a lender to get pre-approved and start your home search!