Unless your pockets are as deep as they come, you probably won’t be able to purchase a house upfront. This means that you will need to get a mortgage. However, mortgage rates can differ wildly depending on various factors. If you want to get the best mortgage rate possible, here are some of the most important tips and factors to keep in mind.
1. Use A Good Online Broker
One of the tools you can utilize to get the best mortgage rate possible is an online broker like Habito.com. According to mortgage firm Habito, here you can get started right away, you can do so online at your own time, you can do it outside of normal business hours, and you can do it for free as well. Instead of having to take multiple days off work to visit various lenders in person, you can compare mortgages from home on your own time.
There is also the fact that some online mortgage brokers like Habito are totally free to use, which will help you save money before you even look at possible options. A good broker will also do all of the heavy lifting for you, which means that they do all of the research on your behalf, then provide you with the best possible options for you and your situation.
2. Shell Out Some Cash
When it comes to getting the best mortgage rate possible, shelling out a bit of cash on a big down payment is a tip you definitely need to follow. No, it may not always be possible to do a 20% down payment on a loan like this, but if you can, you should definitely go for a higher number.
For instance, if your mortgage down payment is only 8%, as opposed to 20%, it’s considered to be a much higher risk deal for whatever lender you are going to. Therefore, if you help them lower the risk on their behalf, which is done by fronting a larger down payment, they will lower your rates quite a bit.
3. Increase Your Income To Debt Ratio
Another important factor that will help you get the best mortgage rate possible, according to mortgage firm Habito, is to increase your income to debt ratio. When banks and lenders see that you have a lot of debt in comparison to your average income, they will increase the rates.
Once again guys, this has to do with risk, because the more debt you have in comparison to your income, the higher risk you are considered to be. Therefore, if you want the best rates possible, paying off as much debt before looking at mortgage plans will make quite a big difference in terms of the final costs.
4. Your Credit Score
Perhaps one of the most important factors to keep in mind when looking to get a mortgage, according to mortgage firm Habito, is your credit score. Yes, if you have bad credit, the chances of getting a mortgage, to begin with, are very slim.
If you have the best credit score possible, as opposed to the minimum amount of credit needed to secure a mortgage, it can make several percentage points in difference when it comes to your rates. Therefore, before you go to secure a mortgage, you need to do everything in your power to increase your credit score.
Getting The Best Mortgage Rates
People, before you go out and start looking at plans and lenders, make sure to have a steady income, a high income to debt ratio, a good credit score, and be willing to put down a large down payment. If you follow these tips, and use a good online mortgage broker, you should have no problem getting some pretty decent rates.