Three Tips for Finding the Best Mortgage Rates

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Buying a house will likely be the biggest and most important purchase you ever make. There are a plethora of factors that go into the decision, and finding the perfect house, while difficult, is probably going to be the easiest part of the process. The hardest part is going to be finding the financing to do it. Mortgage rate trends are actually on a downward trajectory right now and since down payment options are as low as 3%, things look pretty good for home buyers. There are, however, a few things you can do to get the best mortgage rates you can. Here are three tips for doing it.

1. Do Your Research
The first thing you need to do is start early and look into what types of mortgages you’re eligible for, like VA loans or anything else you may be able to benefit from. If not, keep on top of mortgage rate trends and what the housing market is like in the neighborhood you want to buy a house in to get an idea of how much you’re going to need to borrow and how much you can save as a down payment, since these are all factors that will determine your rates.

2. Clean Up Your Credit
Another step you need to take when you’re preparing to buy a home is to clean up your credit. Avoid opening any new lines of credit for at least a year before you are going to apply for a mortgage. Make sure to get a copy of your credit report and clean up any issues that might be on it. This is going to be essential for your approval and could mean the difference between your getting approved or rejected.

3. Shop Around
Another tip for finding the best mortgage rates is to shop around. It’s not enough to just find a bank and apply for a mortgage. Remember that you’re going to have the loan for a number of years so it’s important for you to start a relationship with a good bank so that you don’t have any worries in the future.

Do you have any tips for shopping for a mortgage or finding the best mortgage loan rates? Feel free to share them with us in the comments section below. Reference links.

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