The interest rates on all mortgages were around 4% throughout the entirety of 2015 but this rate is expected to reach the 4.5 mark. Thus in order to save a significant amount of money with respect to interest rates, there is some proper protocol that has to be followed. For this particular purpose we have a few great tips for you.
1. Always improve your credit worthiness
The lender pays a lot of attention to your credit worthiness. Thus it is important to improve it as much as possible. You can do so by paying all your bills on time and keeping no dues as outstanding. Also don’t take any credit when you have the required amount of cash. This will only increase the risks of defaulting.
2. Save money for paying down payment
An amount of at least 20% of down payment is ideal but it is not always necessary. Most of the lenders expect the buyers to put down at least some 3%. However if at all you are interested in building a very sizable equity, you can always stash a very hefty amount of cash and also take it to your closing table.
3. Always seek for pre-approval
Before you actually go on and rush into your mode of house hunting you must get a pre- approval for your mortgage. This process is mostly used to determine how much of money exactly that you are qualified to borrow with dignity for a purchase of your home. Once you get this pre- approval, you will be able to have more expectations realistically.
4. Search for a legitimate and a proper lender
Since there are so many lenders present out there, it is important that you search for a lender that suits all your needs and requirements. This will help you to get the best interest rates. Rates that can significantly improve your financial position and this is possible if you are able to get estimates of loans from various lenders present out there. It is one of the important things to remember.
5. Research on all types of loans
There are different types of loans that are present out there. Thus it is important to do proper research and select the type of loan that appeals to you. This will help you to get the most out of your loan and also get all your needs and requirements fulfilled.