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Knowledge Base->Mortgage Lender->How to get best mortgage rate

      If you're looking for a mortgage now, here's what you can do right now to find the best possible loan.
  1. Shop around.
        Getting mortgage is the single biggest financial decision for most of us. If we want to get best APR, we have to shop around very hard. The common strategy is: Don't take whatever they offer from bank or mortgage brokers. Let them compete with each other.MortgageLender102.gif
        Compare interest rates and fees from at least 3 lenders. You can get these lenders info from your friends or AgentGather.com. Loans with the lowest rate and fees of $1,000 or less are usually the best deals.

  2. Fix any mistakes on your credit reports.
        Your credit score is the single most important factor in determining how well you'll get rate. That score is based on information pulled from the credit histories maintained by the three, major credit-reporting agencies -- Experian, TransUnion and Equifax.
        If there are mistakes on your credit report, and those mistakes hurt your credit score, you'll pay the price in the form of a higher interest rate. Read your credit report carefully, and look for errors. If any, you have to get the ball rolling by requesting an investigation. You can file a dispute online (Experian, TransUnion and Equifax), or by certified letter. The certified letter should include:
    • Your complete name, address, date of birth and social security number.
    • The name of the company you have a dispute with and account number of the disputed item.
    • The reason for your dispute, any corrections to your personal information and a request for correction.

  3. Pay off your credit card debt if possible.
        Almost one-third of your credit score is based on how much of the available credit you've tapped. If you owe $6,000 on a card with a $10,000 credit limit, you've used more than half of your available credit -- and that's too much. You're penalized anytime your debt-to-available-credit ratio climbs above 50%. Reducing your balance to less than half the credit limit on each card will have an immediate and positive impact on your credit score.

  4. Don't apply for new credit cards or other consumer loans (including auto loan).
        Potential lenders will check your credit report when you fill out an application, and those inquiries are noted on your history. Each inquiry can lower your credit score by up to 12 points.



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