| The rules have all changed within the past couple of | | | | worth it in the long run. |
| years. Securing a new home loan has become infinitely | | | | 2) Put 20% of the sale price down. If you can't afford |
| more difficult and even more difficult is securing the | | | | to put a down payment of 20% or more, don't expect |
| best home loan rates on your loan. However, it is not | | | | to secure the lowest interest rates. These days, all |
| impossible to do. More time needs to be taken before | | | | lenders are shell shocked by borrowers who have |
| you apply to make sure that all your ducks are in a | | | | defaulted on their loans so they want to make sure |
| row and that you can present yourself as an | | | | that the borrowers they work with are well invested |
| attractive borrower. Below is a list of the main things | | | | into the house. The idea here is that someone who |
| to accomplish before applying for a new home loan so | | | | has their own money into the house will be less likely |
| that you are offered the lowest rate possible. | | | | to default on the loan. The amount of the down |
| 1) Raise the credit score of all co-applicants to 740 or | | | | payment will make a big difference in the rates you |
| more. Stellar credit used to be considered a score of | | | | are offered. |
| 700 or higher. This is no longer the case. Lenders love | | | | 3) Shop around. It is not unethical or immoral to have |
| to see applicants who have credit scores of 740 or | | | | several mortgage brokers working on your loan. Be |
| more. There are many ways to go about getting your | | | | upfront and honest with them that you will be going |
| credit score up to this point but all of them require a | | | | with whoever offers you the lowest rates. This will |
| little bit of time and patience. Depending on what your | | | | ensure that they work hard to get you the lowest |
| score currently is, you may consider hiring a credit | | | | rates and also that they don't take a large commission |
| improvement consultant. The expense will be well | | | | off the loan. |