3 Tips to Help You Secure a Favorable Mortgage Rate

Aside from the interest rate, the biggest factor affecting the price of a mortgage is often the fees involved. These fees won’t always be easy to find, so you might have to do some homework if you want to compare fees charged by different lenders.

Sometimes, it’s possible to have these fees waived or removed. For example, if you end up moving your mortgage from one lender to another, the first lender will often charge some sort of mortgage discharge fee. In many cases, the new lender will be willing to cover that fee as a price for obtaining your business.

When you get a quote for a mortgage, each lender will offer a “lock-in period” in which the interest rate for their mortgage stays the same. Because interest rates fluctuate so often, this “lock-in period” ensures that you end up paying the same rate you were initially offered should you choose to take out a mortgage with that lender.

If you need a longer lock-in period of two months or more, many lenders will charge a higher interest rate for that provision. For this reason, it’s a good idea to be sure about the closing date of your sale so you can avoid missing out on the lock-in period or asking for an extension.

Generally, a better credit score means a better mortgage rate, but it’s important that you don’t damage your score while you’re shopping around for mortgages.

Every lender will want to know your credit score and see your credit history. Rather than letting each lender make a credit inquiry, however, it’s safer to request one copy of your credit report yourself that you can show to each lender, as too many inquiries into your credit history can lower your credit score.