| Everyone loves saving money. Mortgage interest rates | | | | increases your risk to the lender. The greater risk you |
| have the potential to cost you or save you a lot of | | | | are, the higher your mortgage interest rate will be. |
| money. There are steps you can take before applying | | | | Have the Lender Guarantee the Interest Rate |
| for a mortgage to ensure you are receiving the most | | | | Once you qualify for your desired mortgage interest |
| competitive mortgage interest rate. Here are several | | | | rate, make sure the lender guarantees the rate in |
| tips to help you get started. | | | | writing. You may have to pay for the guarantee; make |
| Take Stock of Your Credit | | | | sure the mortgage lender guarantees the mortgage |
| Having good credit is the key to qualifying for the best | | | | interest rate for enough time to allow you to close on |
| mortgage interest rate. Mortgage lenders use your | | | | the loan. |
| credit to evaluate the level of risk you pose for | | | | Consider Paying Points |
| mortgage lending. If you pay all of your bills on time and | | | | Paying points on your new mortgage could lower your |
| maintain low balances on your credit cards you will | | | | interest rate. Points are pre-paid interest, a fee you |
| qualify for a better interest rate. | | | | pay in exchange for a lower interest rate. Before you |
| Review Your Credit Records for Errors | | | | pay this fee you need to determine if the savings are |
| Your credit records are maintained by three different | | | | worth the cost. You need to remain in the home long |
| companies and all of your creditors have their fingers | | | | enough to recoup the expense of paying points from |
| in these records. As a result, these records are | | | | the savings you gain to make the expense worthwhile. |
| extremely prone to mistakes. Having mistakes in your | | | | Shop Around for the Best Mortgage |
| credit records will damage your credit score. If you find | | | | Shopping for the best mortgage loan will save you |
| mistakes in your credit files you need to dispute these | | | | money. Comparing loan offers from a variety of |
| errors before applying. | | | | mortgage lenders and brokers will save you thousands |
| Close Unneeded Credit Accounts | | | | of dollars in finance charges. You can learn more |
| If you have a large number of credit cards, including | | | | about shopping for the best mortgage and common |
| department store cards, consider closing accounts you | | | | mortgage mistakes to avoid by registering for a free |
| don't need or use. Mortgage lenders view excessive | | | | mortgage guidebook: "Five Things You Need to Know |
| credit accounts as the potential for debt; this potential | | | | About Your Mortgage. |