Forget about low interest home loans and low deposit home loans for a second — just getting a regular home loan nowadays is tough. Mortgage lenders have to be far more thorough — paying more due diligence on mortgage borrowers — than they’ve been in the past because of the Great Recession. To make matters trickier, the average down payment is usually about 3.5%, though each lender has its own criteria.
That being said, it may be tough to get low rate mortgages, but it’s not impossible. Here are a few tips to help you do just that.
Clean Up Your Credit.
One of the most important assets a prospective homeowner has is his or her credit report, which is why it needs to be pristine. The higher the score, the better mortgages rates will be available. If you have less than stellar credit, you need to clean your credit history up before applying, making sure to fix any errors on the report.
Shop Around to Different Lenders.
Interest rates vary depending on several factors, including the conditions of the market, the prospective owner’s background, and other economic factors. Since different lenders have different criteria, they’ll naturally offer different interest rates. In order to get the best mortgages rates, shop around, and then lock in a rate as soon as you’re comfortable with the numbers.
Make a Big Down Payment.
It might be tough to swing, but the bigger a down payment you can make, the better the chances your home loan application will succeed, and you’ll have better mortgages rates available, too. After all, the more you can contribute to the down payment, the more attractive you’ll be to lenders.
If you want to get better mortgages rates, clean up your credit, shop around, and make a big down payment. If you have any questions about getting cheap mortgages rates or any other suggestions, feel free to share in the comments.