Whether you are purchasing your first home, refinancing, or remodeling, a mortgage can help you achieve your goals. However, it is important to prepare in order to secure the best mortgage rates and programs. Here are a couple of things to keep in mind that help you know how to get the best mortgage rates.
Improve the credit score
Your mortgage rates are contingent on your credit. The better your scores, the lower rates you may secure at a lower cost. Even if your credit scores are on the lower side, there is still plenty of opportunities to secure great financing. Our loan officer, Jason Vieira, finds creative ways to increase your scores and open the possibility for better financing if need be. You can improve your credit score over time with timely bill payments and not missing any payments such as your mortgage, credit cards, and student loans. One of the biggest benefits of working with mortgage brokers such as ourselves is there are far more programs and lenders available, including for borrowers with lower credit scores, that you may not have access to through a traditional bank.
Employment and Income
To qualify for your mortgage, you should have two years of consistent employment history and a month’s worth of paystubs to show. Exceptions are made in certain circumstances but two years is the standard length of employment. The same applies to those who are self-employed. You must be self-employed for two consistent years in order to use your income to qualify. Those who are self-employed are also subject to additional requirements such as a P&L statement.
Save for a down payment
Oftentimes, a larger down payment will allow lower mortgage rates due to a lower loan to value ratio. The standard is 20% of the down payment but depending on the seller and other circumstances, you may have the ability to put down a lower down payment. It also depends on the lender and their guidelines. Your mortgage loan officer will know best and how to proceed based on your individual circumstances.
Shop among multiple lenders
When looking to secure low mortgage rates, it is wise to receive quotes from more than one lender. When you go to a traditional bank, they only offer rates and programs offered by that specific institution. When finance through mortgage brokers, you’ll have access to multiple lenders. The Vieira Mortgage Team has access to over 30 lenders and will present the very best rates and programs to you from multiple lenders.
Lock in rates at the best time
The closing process sometimes takes several weeks, during which the mortgage rates can fluctuate. Once your loan officer recommends locking the rate, it is wise to do so. They know the market better than anyone and when it is the best time to secure your rate or wait.
Take professional assistance for better results.
To secure the ideal personalized programs and best mortgage rates, contact the Vieira Mortgage Team. We are a reputable team that has secured the best financing for over 7,000 homeowners. As a mortgage broker, we have access to numerous lenders and more personalized programs to fit your unique situation. Whether you are refinancing in Orange County or elsewhere in California, need cash, or are purchasing a new home, you can trust the Vieira Mortgage Team with all your mortgage needs