Mortgage Rate Tips

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Probably the most misunderstood concept about applying for a Mortgage is that by applying to multiple Institutions negatively affects your credit score. That is totally a misnomer. Shopping around is necessary to achieve the best possible rates for what most likely will be the biggest purchase of your lives and applying to multiple lenders is beneficial.
One of my favorite "Go To" sites is BankRate.com. I find their information and articles to be very helpful in today's Real Estate market. Below is an article I copied from today's page view from BankRate.com:


How do I get the best mortgage rate?

To get the best mortgage rate, shop around with multiple lenders. Ideally, you want a rate that’s at least equal to, or better yet below, the current average rate for the loan product you’re interested in. Comparing rates from three, four or more lenders helps ensure you’re getting competitive offers on a new mortgage or a refinance. Inquire with large banks, credit unions, online lenders, regional banks, direct lenders and a mortgage broker to shop for a mortgage.
If lenders know they have to compete for your business, they might be more inclined to scrap certain fees or provide better terms. Additionally, you want to be comfortable with the mortgage process, and working with a reputable lender who is attentive and service-oriented will make the process go more smoothly.
You also want to compare loan fees, terms and offerings. Keep in mind that current mortgage rates change daily, even hourly. Rates move with market conditions and can vary by loan type and term. To ensure you’re getting accurate current mortgage rates, make sure you’re comparing similar loan estimates based on the precise term and product.

What factors determine my mortgage rate?

Lenders consider several items when pricing your interest rate:
    • Credit score
    • Down payment
    • Property location
    • Loan amount/closing costs
    • Loan type
    • Loan term
    • Interest rate type
For starters, your credit score impacts your mortgage rate because it’s a measure of how likely you are to repay the loan on time. The higher your score, the less risk you pose so you’ll receive lower rates. You can check your credit score for free on Bankrate.

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