If you are aiming a shot at a new property, mortgage rates would surely be one of your most important concerns. Even a fraction difference in the rates could mean you will end up paying few thousand dollars more than what you’d have paid if you had been patient enough to find the best rates available from lenders. This is where experts recommend thorough research and attention to detail. What might appear to be the best deal at first glimpse may not be the best. Here in this write-up we share with you few tips that will help you find the lowest mortgage rates in Houston.
Focus on Your Credit Score
The rate that you are offered by the lenders is linked to your Credit Score. If you have an excellent Credit Score you will be eligible for more mortgage programs and hence you can choose one that offers you the best rates. Also the lending rates offered under mortgage programs tend to vary with the Credit Score. A lower Credit Score signals higher risk for the lenders and hence they would offer you loans for higher rates to protect their interest. If you plan to take a loan few months from now you can actively work towards improving your Credit Score. Even few points increase in the score can make a world of difference with regards to the rate and also the amount of financing you can avail.
Never Take The First Loan
Chances are you may have come across a lender while searching for loan and they claim to be the best and offer you the best rates. Every conventional lender says so and hence you shouldn’t always take their word as holy sermon. There are several lenders you can take loan from and these include your own bank, credit unions and local mortgage banker. Get in touch with at least three lenders and compare the rates and you will see that rates in the market vary more than you ever thought. Look at the finer points such as the mortgage fee as some lenders often tend to trick their customers with lower rates and higher mortgage fee.
Look Beyond Conventional Loans
Depending on where you live and other factors there are several mortgage plans that you can explore beyond conventional loans. For instance mortgage programs such as USDA, VA and FHA are often known to offer you better rates as compared to conventional loans. But you will need to meet certain conditions to be able to apply for these loans. It is important that you do the required research on the loan programs that you are eligible for and then do a comparison between the rates and other factors concerning these mortgage programs.
Choose Shorter Term
A 30-year mortgage might sound a better option as it lowers your EMI but that doesn’t always offer you the best rates. Instead you need to put in a higher down payment and opt for a 15-year fixed-rate loan. This will allow you to avail the loan at better rates.
Keep these tips in mind and you will be able to find the lowest mortgage rates in Houston and fulfil your dream of owning a house.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.