If you’re ready to make the transition from renter to homeowner, you’re probably experiencing a combination of pleasant anticipation and nerve-wracking apprehension. After all, buying a home is a major milestone in the lives of most people, and mortgage payments are significant, long term obligations that should never be taken lightly. The most important thing that you can do at this stage of the game is to shop around for the most desirable terms and rates, and this means investigating different mortgage lenders as well as taking steps to ensure that the best mortgage lenders consider you an appealing client. Following are five strategies designed to help those in your position get optimal mortgage rates.
Shine Up Your Credit Score
Your credit score is among the first things any mortgage lender is going to look at, and the higher it is, the greater your bargaining power. Although it may be tempting to jump the gun when your credit score is less than 760, you’ll pay out thousands of dollars due to an increased interest rate. Taking a year or two to really work on improving your credit will have serious long term advantages when it comes to shopping around for a lender.
Do Your Homework
The beauty of living in the Digital Age is that consumers have the ability to access an abundance of information without so much as leaving the comfort and privacy of their own homes. Let online resources work for you when the time has come to investigate various financing options. You can use the internet to compare rates and terms at your own pace without having to filter out a sales spiel.
Cultivate a Good Employment Record
Lenders are far less likely to look favorably on you if your employment record is spotty or otherwise substandard. As a general rule, lenders offer better rates to those with two or more consecutive years of employment. It may be well worth your while to ensure that you meet this criteria before you go shopping for mortgage lenders. You’re also more likely to impress lenders if your work history is primarily for the same employer, so be sure to save all pay stubs and tax forms.
Save Up Enough Cash for a Large Down Payment
Being able to put up a large down payment is another way to leverage a favorable mortgage rate. As with other strategies, it may mean putting off buying a house for a year or two, but the long term savings will likely be worth it. You may also be able to negotiate smaller monthly payments with a high down payment.
Ask Friends and Family for Recommendations
Old fashioned word-of-mouth is still one of the best ways to find the goods and services you’re looking for, so don’t be afraid to ask your friends and family for recommendations. You can widen your scope by including neighbors, coworkers, and acquaintances to tell you their experiences with local mortgage lenders.
The services of a skilled mortgage attorney in Los Angeles can be invaluable to those facing substantial decisions concerning mortgage funding. Please don’t hesitate to contact the offices of Oaktree Law for more assistance on choosing the lending solution that best suits your individual needs and preferences.