Obviously, the best mortgage rate is somewhere in the vicinity of all-time lows. Today, home ownership is more attainable than ever, with fixed mortgage rates below 4%. Finding a good rate is the first step when choosing the right lender. The experts at City Creek Mortgage recommend some tips on finding the lender that offers the best mortgage rate in Utah.
Compare Mortgage Rates
Although your real-estate broker may direct you to reliable lenders that they may have worked with in the past, do not rely on that. After all, your broker’s main concern is to close a quick deal. The process of securing a mortgage can be complicated, especially to first-time homeowners. Thus, you need to look around for the best possible deal.
Work on Improving Your Credit Score
When applying for conventional loans, a good credit rating is of the utmost importance. The higher your score is, the more preferential rates you will qualify. You will also have more loan choices.
Come Up with a Higher Down Payment
While saving enough money for a down payment is not easy, paying a higher down payment will help you get a lower interest rate. This will allow you to save more in monthly payments down the road. You will also avoid paying for mortgage insurance that most lenders charge if you make a low down payment. A 20% down payment would be ideal for a 30-year mortgage.
Consider How Long You Intend to Stay
If you are sure you will stay in your new home for only a short time before you resell, an adjustable rate mortgage would be more beneficial. This way, you can enjoy the low initial interest rates that come with an ARM. You can then sell your home once your interest rate is set to change. However, this will only work if you are sure you won’t stay in your home for a long time.
Compare rates, improve your credit score, put more money upfront, and consider how long you will stay in your home. Follow these tips to find the best mortgage rate for you.