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How to Get the Best Mortgage Rates Around

In Denver Real Estate, Mortgage Rates | on February, 28, 2014 | by | 0 Comments
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denver mortgage ratesAre you in the process of looking at the current homes for sale in Denver? If that’s the case, you will most likely need to apply for a mortgage loan if you do find a property that you fall in love with. At this point you’ll probably get told to “shop around” and “explore your options” and while it’s definitely a good thing that there are so many different mortgage loans available, a fact which keeps rates as competitive as possible, it can be difficult to know where to start if you’ve never been through the process before. If you talk to a real estate agent in Denver, they will tell you that the first step is to obtain information about your credit score (most people don’t know what their credit score is before applying for a mortgage), which can be obtained from most financial institutions. It’s also wise to then share this score with other lenders that you could potentially apply for a mortgage loan with, since if each lender solicits your report independently, it can actually harm your credit rating. However, this is just the first step to securing the best possible mortgage; during this article we are going to share some more tips.

Information You Need to Have Before Contacting Mortgage Providers

Before you start contacting lenders and asking information about the best mortgage package they are able to offer you, you should ensure you are equipped with the answers to the following questions:

  • What Deposit Can You Make? – This can have a significant impact upon the repayment terms of the mortgage, as well as the requirements that must be met in order to have your application approved (a larger deposit could make a lower credit score more likely to be accepted).
  • How Much Do You Earn? – Job stability and level of income are two other aspects that are essential to a mortgage application. Changing or quitting your job in the period immediately before applying for a mortgage is definitely something you should try to avoid.
  • Tell Us About the Property You Want to Buy? – Mortgage lenders will also likely ask you about the property that you are intending to purchase, since the property will serve as collateral against the loan and they will want to be sure that you are not overpaying for the property.

Mortgage Tips From the Premier Real Estate Agent in Denver

Once you’ve prepared yourself with all the information you’re likely to need, it’s time to start contacting financial lenders and getting some information on what they are able to offer you.

  • Referrals Can Be Invaluable – When you don’t know one lender from the next, it can be very difficult to know which way to turn. Start by asking family members and those in your social circles about their experiences with mortgage lenders. They might be able to provide you with a few recommendations, which you should contact first. These providers will provide you with a benchmark which you can measure other mortgage offers against.
  • Don’t Stick to One Type of Lender – Don’t just contact banks or building societies; contact the full spectrum of financial institutions. It’s common knowledge that interest rates can fluctuate significantly (interest rates are affected by an almost unimaginable number of factors) and there’s no single type of institution that is certain to offer you the best deal. You might be lucky enough to stumble on a particular lender that is intent on generating more interest in their products and is consequently offering unbeatable rates for those that find themselves in exactly the same position as you.  Try different types and different sizes of institution; sometimes a local provider will beat a national lender hands down.
  • Your credit effects your rateTake Action to Improve Your Credit Rating – This is something that you really need to think about in advance, since a poor credit rating can’t be improved overnight. Your credit report will affect the interest rates that lenders offer you, so the better your score is, the better the rates you will receive. You should always check your credit report is correct, as if it contains an error that shows a false negative account, the mortgage rates you are offered will be affected. If you do have negative balances with one or several creditors, contact them immediately to work out a repayment plan.
  • Be Truthful – If you do have something, such as a less-than-perfect credit rating, that could harm your chances of being approved, tempting as it might be, don’t try and cover this up. When filling out mortgage loan applications it’s “cards on the table time.” Being anything less than 100% honest will not do you any favors.
  • Large Deposits are Well Received – If there’s a single way to have a positive effect on the mortgage rates you are offered, this is it. It can take you from zero to hero in the eyes of the lender and make you a much more attractive proposition. Sometimes a close family member may be willing to give you a helping hand is this regard and it can make a real difference.

While running a real estate company in Denver doesn’t automatically make you an expert on mortgage loads, this is an area our team is very knowledgeable about, and if you would like to discuss your requirements with us, we would be more than happy to help you out.

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