Are you wondering purchase a new house in WA, and don’t know how to get the best mortgage rates? If yes, then you have come to the right place. In this blog, we are going to tell you the six effective ways which gives you the idea to get the best mortgage rates. So, let’s get started.
Check your credit score: A credit score defines your financial status. It plays an important while opting for a loan. If your credit score is lower than 650 than it would define that your financial status is poor or bad and you are not a borrower to get the loan at the best mortgage rates. Whereas, if your credit score is 750 or higher, it will define that your current financial status is stable or good and you can easily get the loan at the lowest interest rates. So, if you want to get the loan at the lowest interest rates, then your credit score must be stable or good. It makes you an ideal borrower in the eyes of the potential lender and gives them assured that you will repay the loan on time.
Hire mortgage planner: A mortgage planner is also known as mortgage organizer; he will help you throughout the mortgage loan process. With an experienced in this field, he will take you the best lender who will offer you the loan at the lowest interest rates. Along with that, all the demands that are requested by the lender will be made through the planner because he plays the role of middleman between you and your potential lender. He also convinces a lender to negotiate the loan fees. So, if you don’t know how to get the loan at the best interest rate and how to submit formalities, then it is advisable you hire mortgage planner or mortgage broker.
Get pre-approval of the loan: Pre-approval is the pre-qualification of the investment of a certain value of a range. You are pre-approved means you are passed the approval process and therefore are guaranteed immediately granted the loan at the best interest rates. This process requires minimum documentation and no collateral or security. And also keep you an ideal buyer in the eyes of the seller. And it is observed that if you get pre-approved loan then seller will give you priority over others. So, if you are really thinking to purchase a new house and get the loan at the best mortgage rates, then you should apply for the pre-approval process.
Save up for a down payment: Putting more money down can help you obtain a loan at the best mortgage rates. Down payment affects the interest rate for sure. If you pay more money to the potential lender, then the interest rates automatically get reduces, and you will get the loan at the best mortgage rates. As a general rule, you will need a minimum down payment that is 20% of the purchase price; you will be likely to pay PMI or private mortgage insurance.
Cash reserves: In the mortgage world, the cash reserves are measured in terms of the number of months worth of house payments you have saved in cash. The reserve includes money saved in checking, or savings accounts, money market funds, or certificate of deposit. However, it generally doesn’t include funds in a retirement plan since that money can only be withdrawn after paying taxes and penalties.
Finding the best mortgage broker: A mortgage broker knows the live mortgage rates and have a solid networking connection with the potential lenders. If you hire the best mortgage broker, he will take you the reputed lender who will offer you the loan at the best rates.