So you’re out of college, have landed a job, and now you’re looking for a new home – you’re tired of renting and want to own something for a change. At some point, you will have to pay for something you can’t afford (that’s life), and when that happens, you will have to take out a mortgage. Here are some tips to get the best mortgage rates.
- Know your credit score. Your credit score is determined by a number of factors, including payment history, diversity, and how often you apply for new credit. These account for 35%, 10% and 10% of your score respectively. The higher your credit score, the lower the interest rate on the mortgage. Higher credit scores get you the best mortgage rates. If you don’t know your credit score, find out and figure out how you can give it a boost if needed.
- Use a real estate agent. Not only do agents protect you from any illegal activity on the part of the seller, but they can also negotiate the best mortgage rates for you. That’s part of their job. 88% of home buyers use real estate agents when shopping for houses, and there’s a reason for that.
- There are different types of loans you can take out. For example, FHA (Federal Housing Administration) loans are for first-time home owners. They are government-backed and tend to have better home mortgage rates. There are also VA (Veteran’s Administration) loans, which are cheaper rates for veterans or their spouses. Do some research and find out what kind of discount loans you’re available for.
- You can do it all online. Most people today have an online checking account, but you can do anything with your bank online, including take out a mortgage. Any reputable mortgage company should also be available online.
Navigating the waters of finance and mortgaging can be scary at first, but there are plenty of resources to help get you started and ensure that you get rates that are right for you.