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10 Best Mortgage Deal Tips

If you’re in the market to buy a home, then you’ll want the best mortgage deal possible. Yet, there’s no easy way to find that best deal, it take patience and planning. Apart from ensuring your financial stability and a high credit score, you’ll also need enough savings to cover a down payment, closing costs and additional expenses. The whole process in getting the best possible mortgage rate seems daunting at first. Thankfully, with our top 10 tips for getting your best mortgage deal, you can take our knowledge to the bank so you can find the right rate for you:

  1. Keep all of your payments up to date
  2. Consider paying off any debt and put down a smaller amount at closing. This will let you replace high-interest debt with lower-rate mortgage debt. And the mortgage debt comes with deductible interest, too
  3. Each credit inquiry temporarily damages your score so if you have new financial obligations coming in the near future be sure to get your mortgage loan first
  4. Don’t change your job or start self-employment until after you’ve gotten a home loan, as banks want to see a decent history of stability in your job or business
  5. Don’t change your bank right before applying for the loan, either. As with employment, this will affect how financially stable you appear to be
  6. Make sure you don’t take any new loans or use credit cards for large purchases during the months leading up to your getting a mortgage loan, as this can hurt your debt to income ratio
  7. Get pre-approved, rather than pre-qualified, for the loan. Getting pre-qualified just gets you a loan estimate. Getting pre-approved, on the other hand, allows you to know the exact loan amount you qualify for (if you’d like to learn more about getting pre-qualified, read How Do I Qualify for a Home Mortgage?)
  8. Don’t purchase a home that costs more than you can afford, even if you qualify for the loan amount. Doing so can be hazardous to your financial health and credit
  9. If you’re a first time home buyer, remember to always have additional savings put aside for home repairs
  10. Shop around to find a decent rate and service. Or, use LocalRate411 and let us connect you with a great mortgage agent in your area, free of charge

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