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Procure The Best Mortgage Deal In 4 Simple Ways!

Getting a mortgage or home loan has become more difficult as lenders are more particular about who they lend the money to. Performing due diligence on borrowers is more strict than in the past and many people struggle to get the financing they need. Borrowers are finding it difficult to deal with traditional lenders and it is not a wonder that many have turned to non-traditional sources to get the financing they need. If you are in the market for a mortgage, there are things that you can do to improve your chances of getting the best mortgage rate.

1. Improve your credit

Having excellent credit is by far the best way to procure a great mortgage. The first thing you should do before you start shopping for a mortgage is to request your credit report. Go through it and make sure that it is accurate. It is important to remember that lenders look at the borrower's credit score before deciding the interest rate to charge. If you maintain a high score, you have an edge and you can negotiate for better rates. If you notice errors or negative accounts on your credit report, call the creditor to work out a payment plan or to correct wrong information.

2. Honest loan application

It is important to be transparent on your loan application. Attempting to hide flaws like credit problems, or giving inaccurate information about assets or income can be a problem when you are trying to get financing. Make sure that you fill out the application accurately and do not hold back on information that can delay the process or work against you. Provide all the requested documents to enhance your chances of getting mortgage approval. The lender requires as much information as possible as a guarantee that the borrower will have the capacity to repay the loan.

3. A large down payment

Making a large down payment can help your chances of getting a great deal. If your mortgage application succeeds, the ability to make the attractive down payment can make the lender more willing to offer better rates. Having savings can help you to come up with the cash you need but you can also try to source for money from family or friends to allow you to have more cash up front. 

4. The right mortgage

When shopping for a mortgage, try to find the best offer available. You should not just focus on interest rates but on the entire package including origination fees, discount points, and other fees. Evaluate your budget and determine the monthly payments and fees so that you can avoid surprises. Getting a loan that you can pay comfortably is important and you need to calculate your debt-to-income ratio. Look at the total cost of home ownership and establish how much you can comfortably afford each month.

It is a good idea to do your homework and compare different loans on offer. The more information you have, the easier it will be to get the perfect loan. If you are planning to refinance, research the market and talk to a real estate agent before applying for a new mortgage.

by Benson Mortgage
in Mortgage