A mortgage loan is probably the biggest investment for most people. Getting a mortgage is not easy for most people. A low income, poor credit score and other financial factors can easily take you out of a perfect mortgage plan. The mortgage rate and interest rates will depend on the regulations of the lender. most mortgage lenders will look at your down payment, credit history , income and monthly commitments to determine how much mortgage they can afford to give you. When you are looking to take a mortgage you definitely want the higher rates with lower interests.
Here are a few tips to help you get higher mortgage rates with lower interest rates
Raise your credit scores
The amount of money you get from your mortgage brokers depends on your income and credit score. A higher credit score will most likely land you a larger mortgage while a lower one will do the opposite. Lenders rely on the credit report to check how much you have in dept and if you pay al your loans on time. Impending loans and late payments will probably land you a lower mortgage. Before applying for a mortgage, cross check your credit account to ensure you have a high credit score and good history. If there are problems, deal with them legally so you can clear the issues permanently
Large down payments
You have to make a down payment of up to 30% or more of the cost of the home for lenders to approve your mortgage application. Some lenders may take as low as 5% of the price as a down payment. Chances of lower interest rates and higher mortgage rates increase when you make large down payment deposits. This means you can buy a bigger house at a lower cost than you should have when you made a low cash deposit.
Most people make the huge mistake of going with the first broker who pre-qualified their mortgage. Different lenders usually have different rates. It is crucial that you visit different mortgage brokers to check out and compare different deals before you make a decision. You can get the same services from banks, mortgage brokers, and loan lenders. Researching all your potential creditors can’t be that easy, you could get help from a professional like a real estate broker to help you find the perfect broker. Keep in mind that this is a long term financial decision and will affect all your finances for several years to come. Referrals from friends and family can also help you get the perfect deal.
Choosing the right plan
This is all about getting a mortgage that is more convenient for you. The two main mortgage payments include a biweekly payment that is made once every two weeks and some monthly payments. Lenders give you an option of choosing the interest only payment method where you clear the interest payment first and make a lump sum payment on the principle amount or the repayment where you clear them simultaneously. These two payments method have different interest rates, depending on the mortgage broker. Ensure you check out all the payment methods for a great deal before making a decision.