7 Tricks to Get the Best Mortgage Rate

A High Credit Score is an Asset

It all starts here, doesn't it? A few late and missed payments later, you suddenly find that your credit score has tanked and you are being denied or being charged prohibitively high interest rates for additional credit - be it a credit card or a mortgage

Compare Multiple Offerings

In case you haven't been living under a rock, you know that there are choices aplenty when it comes to choosing a mortgage - perhaps one too many. This even after the fact that, subprime lending has been relegated to the position of a historic misadventure.

Ensure that Multiple Credit Checks don't happen

Here's another common mistake that many prospective applicants make - they apply for multiple mortgages thinking that they can pick the one that offers them the best deal. The problem with this is that, all of these separate applications lead to separate credit checks.

The Home Equity Conundrum

Home equity or down payment is among the most important considerations when you are planning to get a mortgage. The logic is simple, the more you pay as down payment, lower your mortgage payments will be.

Choose your mortgage tenure wisely

It is only natural that you explore multiple tenure options when you are seeking home loans that works for you. If you seek a longer mortgage term, individual EMI payouts will be lower as compared to a shorter one. But the lower EMI payout comes at a price.

Qualification for Special Programs

God might have created everyone equal, but the manmade financial sector works a bit differently. Some groups of individuals qualify for a reduced rate of interest based on meeting some predetermined qualifying criteria.

Get the Closing Cost Issue Sorted

The moment you finalize or close the purchase of your house, you have to deal with closing costs. These costs are usually equal to 3% of the home's purchase price and comprise multiple factors including processing charges, appraisal costs, and fee for title insurance and charges for underwriting.

Conclusion

You are well within your rights to look for details not just when you are indulging yourself during a festive sale, but also when you are purchasing a new car or a house.

[Source: http://www.huffingtonpost.in/entry/7-tricks-to-get-the-best-_b_12562026]