Your Mortgage Rate

Ask anyone what the most important aspect of a mortgage is and you'll probably get the same answer from just about everyone - the interest rate. A high interest rate could add thousands of dollars to the cost of your mortgage over time. Fortunately, you can help positively affect your mortgage rate. Before you even get ready to apply for a mortgage, check out these steps you can take to improve your chances of getting a better interest rate:

Out of all the factors that help determine your mortgage rate, your credit score may be the most important. The good news is you have at least some control over it. Request a free copy of your credit report from one of the major credit bureaus and review the information on it. You'll find out if your score is being negatively affected by late payments, large amounts of debt, or other factors. You should also make sure your report doesn't contain any mistakes, as they could be hurting your score.
Another important factor that plays a part in deciding your mortgage rate and credit score is your total amount of debt. If you've accumulated thousands of dollars in debt or maxed out all of your credit cards, lenders may see you as an irresponsible borrower. They'll be less inclined to approve you for a good interest rate, or any interest rate for that matter. Your best bet is to do your best to pay down your total debt before you even get ready to apply for a mortgage.
Just like anything else in life, it pays to look around and comparison shop for your mortgage. If you're really looking for the best rates, you have to take the time to check out multiple lenders. Mortgage lender interest rates change almost daily and you never know where you'll find the best deal. Save yourself some time and use our free service to obtain Maine mortgage loan quotes from several lenders at once!
One of the most overlooked ways to get a better mortgage rate is through negotiation. Everyone knows the nation's economy and housing market are struggling, meaning most mortgage lenders will at least consider any type of deal. When trying to negotiate with a lender, let them know that other lenders in the area are willing to meet your price. In many cases, the lender will match offers from other lenders.
In the case that you simply cannot improve your credit score or make much headway through negotiations, you may be better off saving your money for a down payment. By saving up for several months or even years, you'll be able to pay a much larger down payment on your mortgage, which lenders absolutely love. Generally speaking, the more money you can put down on your mortgage, the more likely you'll get a better interest rate.