Having a low-interest rate can help you save thousands throughout the life of the loan. The question now is how you can get the best mortgage rate? Listed below are the most effective and simplest ways to help you make sure that you will have the lowest mortgage rates possible.
Compare Rates From Different Lenders
You have to compare fees and rates from different mortgage lenders. It is recommended that you get a minimum of three mortgage quotes. There are a few buyers who avoid doing this because of the misconception that making too many inquiries will negatively affect their credit scores. This is not true! FICO permits several multiple credit inquiries whenever consumers are going loan shopping or also referred to as rate shopping. Within 30 days, consumers can ask as many mortgage lenders as possible to pull their credit scores without worrying that doing so would lower their credit scores.
Maximize Your Credit Score
When it comes to determining interest rates, the most important factor is the credit score. You will have a lower rate if you have a higher credit score. You need to ensure that your credit score is as high as it can be. Credit Karma and Wallet Hub are only two of the best places where you can pull up your credit scores. Doing this will not harm your credit score. In case you have a low credit score, there are ways for you to increase it in a short amount of time including paying off credit card balances, disputing negative items on your credit report, and identifying negative accounts.
Negotiate Using Mortgage Quotes
The quotes provided by a lender isn’t set in stone. In general, the loan offer sets the rates and fees higher so that they will also have higher commissions. You can get the best mortgage rate by using the mortgage quotes you have to negotiate. Bring a quote from one lender to another one and ask them if they can beat it. Bring that quote to a different lender and continue to do this until you get the best mortgage quote. This is among the most efficient methods of making sure that you are receiving the best mortgage rate Myrtle Beach. You will not only get a lower rate, but you can also negotiate the origination fees as well as the closing costs.
Apply For A Government Home Loan
Mortgages that are backed by the government are similar to conventional loans except for the fact that the latter is not insured by the government, making them a bit riskier. Since the lender is guaranteed to have their money back in case the borrower defaults, they will have lower mortgage rates compared to conventional loans.
FHA loans are the most commonly used type of loans these days due to their flexible qualifying guidelines as well as low down payment requirements. VA loans offer several benefits and they are by far the cheapest mortgage loans today. They have low closing costs, no PMI, low mortgage rates, and provide 100% financing.
Consider An Adjustable Rate Mortgage
If you are thinking of selling your home within five years, you should think about getting a 5/1 ARM loan, which begins with low mortgage rates for the first five years. After that, the rate will gradually increase. In case you are unsure how long you plan to stay in your house, it’s highly recommended that choose a fixed mortgage rate.
Call MB Mortgage Pros if you need help in finding the best mortgage rate.
MB Mortgage Pros
630 Chestnut Road
Myrtle Beach, SC 29572