Mortgage rates always take up a long time to deliberate and are often considered paramount to getting you the best deals in real estate. Any miscalculation can really put the entire calculations under severe strain and you can even end up defaulting if you have not got the rates that you are capable of handling. Mortgage rates are basically associated with the risk that a bank is willing to take as far as repayment of a mortgage loan is concerned. If the risk is high, the rate shall also be correspondingly higher. Hence, it is important that you make the bank feel that giving you the loan does not entail so much of a risk for them.
On order to qualify for best mortgage rates, there are a few conditions that you need to meet. Initially, it is a great option to shop around and check with banks and lenders as to the rates they can offer. Once you have been able to shortlist a few lenders who can give you competitive rates, it is time to fix any issues that you may find that hamper such a probability. This onus lies on you as a person, as most issues are concerned with your own personal finances.
To start with check your credit reports and make sure everything is in order. Any mistakes that you find should be immediately brought to the notice of the credit reporting company and the same rectified, with ample proof submitted to them proving your point with facts and figures. Then it is time to look at your credit score. If these are not impressive, go around making changes in your life style that can offset any negative remarks on your scores. Pay your bills on time for at least six months continuously, pay taxes, clear credit card bills and make sure that you have enough cash to show as a decent bank balance. This gives the lender enough confidence on you as a mortgagee.
You have to realize that lower and fixed rates are for people who have equity in hand (down payment options for home loans), good credit reports and scores as well as lesser loans to repay. A good income can also tilt the bank in favor of giving you good mortgage rates. If you do not have sufficient income to prove this stability, it is prudent that you apply jointly, along with your spouse, if she has an income. This will bloat the income to a respectable level and help you in availing lower rates.
The last twelve to eighteen months of personal financial activity will give the bank a good picture of the exact status of your personal finances. Hence, keep these time periods as clean as you can. Also, a competent and licensed mortgage broker can help you clinch good deals as far as mortgage rates are concerned.