In the market for a new or used home? If you're like most future homeowners, you'll need to apply for a mortgage through at least one lender in order to make the dream a reality. Here are a few things you can do to optimize your rates upon applying for a mortgage loan:
Invest in Some Assets
If you have assets to claim when applying for a mortgage, chances are that you'll be offered a lower rate by at least some of the service providers you apply with. If possible, buy a raw piece of land even if it's in a different state. You can also purchase a vehicle, motorcycle, or even a moped to claim as an asset as long as you pay it completely off before applying for a mortgage. Ask the lenders you plan to apply with for a list of assets that you can use to prove your qualification for the loan amount you are asking for.
Pay Off the Small Stuff
It's a good idea to pay off all the small things that are reported on your credit report if you have any. Old medical bills, child support payments, and other similar things can play a negative role when it comes to helping your lender determine your mortgage rates. Request copies of your credit report from the major reporting agencies and review them for negative claims that you can afford to pay off and have erased from your report.
You may have to call the companies who have reported what you owe to remove the reports with the credit agencies. So, be sure to closely monitor your credit reports after paying debts off to make sure they get erased before applying for a mortgage.
Find a Real Estate Agent Early
It is also important to find and secure a real estate agent to work with early so you can take advantage of their expertise when it comes to applying for a mortgage. Your real estate agent should be able to help you create and execute an action plan that will help you optimize your success with getting the lowest mortgage rates possible. This is an especially helpful technique if you have specific credit challenges that you aren't sure how to rectify.
Chances are that your real estate agent will have worked with several credit-challenged clients in the past and can help you overcome your obstacles before applying for that mortgage you want.
Making use of these tips and tricks should help make it possible to optimize your mortgage rates once you're ready to file your applications with lenders.