Best Mortgage Rate

If you are anticipating home ownership you are no doubt looking for the best mortgage rate. You have probably seen advertisements from banks and credit unions touting low interest rate mortgages but be aware that those rates will apply to people that meet certain criteria. That includes a good credit score and credit history. Their employment history will show that they have worked at the same place for at least two years. They will also have a reasonable current debt load.

Best Mortgage Rate: Your Credit Report

If this doesn’t describe you, don’t be discouraged. You still can find the best mortgage rate by planning and preparing before realizing your dream of home ownership. The first thing you need to do is to check with the three national credit reporting agencies to take a look at your credit report. You can obtain these reports for free once every 12 months. These credit reporting agencies are also where lenders will obtain your credit score. Your credit score tells a lender how much of a risk they are taking in loaning you money.

Best Mortgage Rate: Credit Repair

Study these reports for any errors or anything that can be removed from them by contacting the reporting agency. There are some companies called credit clinics that offer credit repair. Be cautious, as some of these credit clinics are unscrupulous and encourage people to commit fraud by offering to change their identity or create a new credit file for them. These corrupt companies will charge you a large fee for things that you can take care of yourself at little or no cost. By contacting the Federal Trade Commission you can learn more about credit repair.

Best Mortgage Rate: First Things First

Your next step in preparing to find the best mortgage rate will be to get your financial house in order. Take a look at your current debt and begin to pay it down or even better, to pay it off. Those high interest credit cards must go so begin to do all you can to eliminate that debt. Create a reasonable budget on which you and your family can live and try to get a savings account underway. This is another area lenders look at while also expecting a substantial down payment in addition to your having a savings.

Best Mortgage Rate: On Your Way

The best mortgage rate would, after all, be a low interest rate for you so check into a few different loan companies or banks and sit down with a loan officer to see what they have to offer. You are on your way, having corrected errors in your credit reports and paying off current debt while starting personal savings as well as saving for a down payment. With some preparation, planning and persistence on your part you will indeed find the best mortgage rate and be well on your way to your dream of owning your own home.

From the Superpages.com