How to Find the Best Mortgage Rate
Finding the best mortgage rate can be tricky, whether buying your first home or trying to refinance your existing one. There are a few tips or rules you can follow to ensure you get the lowest rate possible.
There are 3 major credit bureaus, namely: Experian, TransUnion and Equifax that collect the information that make up your credit history. This information is used to formulate your credit score. You can improve your credit score through the following steps:
- Know what type of mortgage you can afford before looking for a mortgage.
- Checking your own credit score. If it's a bit low, try bumping it up before applying for a mortgage. If your score is already good, keep it there by not closing any credit accounts and by not applying for new credit.
- Check MortgageRatesCut.com rates to find the best mortgage rates in your area.
- Get needed financial documents together before calling or meeting with a lender. Important documents include:
- Tax returns for the past two years.
- W-2 income statements.
- Two most recent pay stubs.
- Most recent credit card statements.
- Most recent bank and investment account statements.
- Divorce decrees and child-support documents.
The most important qualifiers for acquiring the lowest mortgage rate possible are to have:
- Great credit score
- Low debt-to-income ratio.
- 20% down payment (if purchasing a home).