If you’re interested in buying a home, you may need a mortgage, and the interest rate is something you need to consider in advance. Every potential homeowner wants the lowest rate possible, and the following tips will help you get the best rate on your mortgage:
Work on your credit score
It is a must that you improve your credit score as this may impact the rate you receive and the amount of mortgage you qualify for. Make all of your monthly payments on time, as any missed payments will negatively affect your credit score, and this is something you need to avoid. Car loans, student loans, credit card bills, and other monthly expenses must be paid on time, so it’s a good idea to set up reminders and stick to this goal.
Pay off large debts
This goal is not easy, but try to pay off significant debt sources before applying for a mortgage. This debt can include student loans or credit card debt; paying these off will help you obtain a credit score you’re happy with and will also significantly reduce your debt load which will help you qualify for a larger mortgage. You must be mindful of your current debt and spending habits when preparing to buy a home and act accordingly to secure a great rate. You need to make sure you have enough money to cover your monthly expenses, and paying off loans before applying for a mortgage will help you see where you stand with your finances.
Live within your means
Even if you have a great credit score, if you choose a mortgage larger than your income can afford, you may need to be placed with alternative lenders leading to a higher interest rate, and you may be unable to keep up with your monthly payments. Select a property that would be a good investment and ensure your mortgage does not cause you to have an unhealthy debt to income-ratio. A good rule of thumb is to ensure you are not spending more than 35-39% of your income on housing.
Ultimately, the best way to get a lower rate on your mortgage is to contact a reputable broker, and the experts at Grover Mortgage Group are always ready to help. We will provide you with detailed information and present you with the best mortgage products, so if you are looking for a mortgage specialist in the Oakville area, contact us today!
