If you’re looking to buy a home, you probably want to secure the lowest interest rate possible for your home loan. Over the last couple of years, that was easier to do as the housing market saw record-low mortgage rates, but this year rates have risen dramatically.If you’re looking for ways to combat today’s higher rates and lock in the lowest one you can, here are a few factors to focus on. Since approval opportunities can vary, connect with a trusted lender for customized advice.
Your Credit Score
|Credit scores can play a big role in your mortgage rate. Freddie Mac explains:
That’s why it’s important to maintain a good credit score. If you want to focus on improving your score, your trusted advisor can give you expert advice to help.
Your Loan Type
|There are many types of loans, each offering different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) says:
When working with your real estate advisor, make sure you find out what’s available in your area and which types of loans you may qualify for.
Your Loan Term
|Another factor to consider is the term of your loan. Just like with location and loan types, you have options. Freddie Mac says:
Depending on your situation, the length of your loan can also change your mortgage rate.
Your Down Payment
|If you’re a current homeowner looking to sell and make a move, you can use the home equity you’ve built over time toward the down payment on your next home. The CFPB explains:
To learn more, connect with a lender to find out the difference a higher down payment can make for your new mortgage.
|These are just few factors that can help determine your mortgage rate if you’re buying a home. The best thing you can do is have a team of professionals on your side. Connect with a local real estate professional and a trusted lender so you have the expert advice you need in each step of the process.|