How to Secure a Low Mortgage Rate
With all of life’s unexpected expenses and an unpredictable economy, we all look to limit the amount of money we spend, especially on those expenses that are within our control. While we can’t control medical expenses or the cost of food, we can skip out on that extra latte or cancel cable if things get tight. It may come as a surprise that a home loan payment is also one of the expenses you may be able to influence. The mortgage rate you qualify for will impact your payment and is based on factors that are well within your control. So how do you get a good mortgage rate? Here we list three things that can affect your mortgage rate that you have the power to change!
|Getting a great mortgage rate is more in your hands than you think! |
The higher your credit score, the better chance you have of scoring a lower mortgage rate. If your credit score is low, you may want to wait until you’ve had a chance to pay down some debt or repair a blemish. A low credit score can result in a high mortgage rate or you could possibly not qualify for a mortgage at all. Learn more about your credit score here
In order to qualify for a loan, two years' worth of uninterrupted work history is a common requirement. However, if you don't quite have the full two years, or had a stint of unemployment, there can be ways to work around this. Make sure to let your lender know the reason for a gap or why you've moved jobs, so they have the full picture when making a decision.
Life is always full of unexpected twists and turns. To ensure you're prepared for a financial downturn, lenders like to see you have a savings fund built up for emergencies. A solid goal to set for yourself is to start saving 10% or more of your paycheck. If you set up an auto transfer, after a while you won't even notice the difference and you'll be well on your way to building up that emergency fund.
Want to learn more about securing a great mortgage rate? Get a free consultation with one of our home loan experts. We’ll walk you through the mortgage process so you can get a clearer picture of what to expect when it is time to purchase your first home. Not quite ready for a consultation? Subscribe to our email series, The Path to Ownership, for more tips on what to expect when buying your first home.
Lincoln Savings Bank, Member FDIC. Equal Housing Lender.