How To Get A Good Interest Rate

 

Are you thinking about financing or refinancing a home? If so, do you know the tips that you should follow so you can get the best interest rate?  You may wonder if it is possible for you to take advantage of the great interest rates you have heard so much about. There are several things that you need to know so that you will impress lenders when you are applying for a home loan.

 

Experts agree that post-recession, buyers will need to have a financial history that is nothing short of impressive. Good credit and a stable employment history will also help you win over lenders easily when you are applying for a loan. These factors combined can help you secure a very low interest rate. 

 

Even if you have not been on your job for a long period of time or your credit report could use some improvement, there are still ways that you may qualify for a good interest rate.

 

 

Can you proudly proclaim that you pay your bills off on time every month? If so, you can score extra points with a lender because they view this as financial responsibility. They want to make sure that the consumer they are extending a loan to will pay the loan off as agreed. 

 

Your next question may be, “What is considered a good credit score?” A score of 720 and over is considered a good credit score. In case you were wondering credit scores can range from 300 to 850.

 

If you are not sure what your credit score is you can request a copy of your credit report from the three credit reporting agencies. You can also get one free copy of your report from each agency annually. 

 

 

Lenders want to make sure that you have a way to pay them the money that you owe them every month. Applicants who are considered a good risk have proven that they have the income to pay their regular bills in addition to the mortgage payment.

 

 

With the recent economic collapse lenders are not surprised to see that applicants have gaps in their work history. However, most lenders only require that you have held steady employment with the same employer for two years or that you have held employment in the same industry for two years consecutively. 

 

These are just some of the things that you will need to have in your favor so you can get a good interest rate on a mortgage. Improve the areas that need improvement so you will be able to qualify easier.