Finding the best mortgage rate is a goal that everyone wants to achieve, whether the purpose is to refinance an existing loan, or to buy your first home.  Here are some ways to help you find the best mortgage rate.

The most important criteria for obtaining a low mortgage loan rate are:

• 20% down payment (if you are buying your first home
• Low debt to-income ratio
• A good credit score

So how can you make sure that you meet this criteria?

1.    Pay attention to your credit rating and know what is in your credit report. This can’t be stressed enough.  Order a copy of your credit report from all three of the major credit bureaus: Equifax, TransUnion, and Experian, and check it thoroughly for errors, making sure to report any promptly.
2.    If your credit score is low, take steps to repair it. Make payment arrangements with old creditors, cancel some of your newer credit cards if you are carrying more than 2-4, and don’t apply for any new credit accounts.

3.     Make sure that your paper work is in order.  When you meet with your mortgage lender, you should bring:

• W-2 income statements
• Recent paystubs
• Credit card statements
• Your budget
• Your most recent bank account statements
• Your budget
• Investment account statements

Getting pre-qualified for a mortgage before you begin searching for a home will save you time and money, and when it comes to refinancing, the rate that you are able to obtain makes all the difference. In either case, it only make sense to be prepared, and following these steps will help you to obtain the best mortgage rate possible for you.

This entry was posted on Wednesday, May 6th, 2009 at 12:43 am and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.