3 Most Important Things to Getting the Best Mortgage Rate
Buying a home may be the biggest purchase of your life, so securing the best mortgage rate is of paramount importance. Mortgage interest rates are determined by a number of variables, most of which the borrower has some control over to fit with the program. Not just any lending institution can provide you with top-notch loan products and best mortgage rates. To enhance your borrower application and move in the right direction for approval, you want the best mortgage rates and full service funding to close the deal.
1. Know Your Credit Score.
Your credit score is a major factor to what interest rate you will qualify for and how much your monthly mortgage payments will be. The higher your credit score, the lower the interest rate and vice versa. Credit scores will range from a bottom number of 300 to a perfect 850, with most borrowers falling between 660 and 750. Trans Union, Experian, and Equifax are the three main credit-reporting agencies that keep a file on every one of us. You need to know your credit score to be able to improve a low Fico and bump up your number for a better mortgage rate. This can be accomplished by disputing negative data and increasing your on time payments for positive credit reporting.
Your best bet to secure funding for an owner occupied residence is to have your documents collected in advance and ready to be turned over to your lending institution. They will ask you for your W2 records, banking statements and proof of additional income beyond your official workplace. Mortgage applicants with a lower credit score may still apply for a loan and be approved on the spot with mortgage lenders who carry their own contracts.
3. Direct Endorsement Underwriting.
The easiest and most economical way to secure funding for your home is to make a credit application to a Direct Endorsement underwriter. These special branches of lending professionals carry your paper work from start to finish, from the loan origination signature to closing a sweet deal. In addition to client convenience, the Direct Endorsement underwriter cuts out the middlemen that can rack up unnecessary expenses for the borrower. There are no broker or administrational fees to tack on to the mortgage, thus giving the client a wide selection of loan products at rock bottom prices.