How to Get the Best Mortgage for Your Salary

Though interest rates are near all-time lows, finding the right mortgage can still be a tricky process.

Using these tips to shop for a mortgage will save you time and money in the process.

Review your credit report once a year.

Lenders use your credit score as one of the main factors in determining if you will get approved for a loan.

Spruce up your score at least six months before applying for a loan.

Avoid big purchases that put your finances in jeopardy and say “No” to opening any more lines of credit.

Work on improving your debt-to-income ratio.

This is the amount of money you make versus how much you owe.

Either reduce your debt or increase your income.Pay off your loans completely or start contributing more

toward monthly credit card payments.

Plan for a big down payment.Most loans require a down payment of 5 to 20%

of your future home’s price.

Remember: The bigger your down payment, the more you’ll save (usually).

Perks often include lower interest rates and more attractive closing fees.

Ask yourself: How long will I live here?If it’s only a few years, a hybrid loan nets you a lower interest

rate than a typical 30-year mortgage.

Lower your overall risk with a 15- or 30-year-fixed mortgage option.

No one can predict the future – interest rates could spike or the housing market could change. If you aren’t comfortable with unknowns,

a more traditional plan may be best.

Fast-track your search by requesting online quotes from local lenders.

Provide each lender with the exact same information and compare the rates they send back to you.

How many bedrooms? Do your children have separate bedrooms or share? You may consider

looking at homes with a spare bedroom to grow into.

Look for lenders who are verified, licensed and highly recommended.

Lenders on Zillow have a 4.9/5 average customer rating and an average of 16 years of experience.

Choose the one lender you feel most comfortable with.

Call or meet in person before committing – you’re going to be working closely with them for a while.

Lock in your interest rate when you feel confident.

Opt to lock in your rate immediately after your application is finished or float your rate until you’re ready to close. You could end up paying less if the market is in a better spot, but it’s a gamble.

The No. 1 rule for mortgage success…

Enter into the process well-prepared and confident. You’re about to buy a house!

Questions about your mortgage? Get help from a local lender today –

often within minutes.

Talk to a Lender Now