How to Make the Most of the Current Mortgage Rates

If you are gearing up to start the house hunt this spring, there are a number of things to keep in mind, even if you have a great credit score. While mortgage rates are lower than ever, it can be very difficult to get financing unless you are in the top tier of credit worthiness. Even worse, the current expectation that loans are hard to get is allowing those with good credit to settle on offers that aren’t the best for them. Ilyce Glink offers some tips on how to hit the ground running on your housing search in her article on the Equifax Finance Blog, titled “New Year’s Resolutions for Homebuyers in 2012.”

Step one is to consider your credit. You can order your credit reports online for free once a year and for a small fee if you need to check them more frequently.  However, you should keep in mind that requesting your score frequently will cause it to decrease. If your score is strong, as in 780 or higher, you can qualify for great rates and will be looked upon favorably by lenders. If your credit score is low, now is the time to fix your bad habits and build your score back up before rates begin to rise.

When it comes time to talk to lenders, you should consider shopping around. While it is time consuming, you can get great deals by consulting four or five lenders before signing an application. Make sure to consult different types of lenders, including a big bank lender, a small local lender, a credit union, a mortgage broker and an online lender. Use the knowledge you gain to negotiate with lenders and ask for better deals to start your home buying process, and don’t be afraid to challenge what you are offered.

There are some other tips in the full article, so be sure to check it out as well as the other informative sections on Equifax Personal Finance Blog: credit, insurance, taxes, retirement, real estate and more!