This is a piece we wrote for 30yearfixedmortgagerates.org
How to Get the Best Mortgage Rates
Getting the best mortgage rates possible can be a difficult task to achieve for most people today – especially with the market offering less and less stability in terms of house prices in some areas and many lending institutions reacting accordingly. Nevertheless, there are still a number of ways that consumers of any income bracket can go about getting the best possible mortgage rates on a new home purchase or re-mortgage provided you are prepared for the process and know where to go for the best possible resources.
See What the Government Has to Offer and Current Restrictions
Mortgage RatesFirst, whether you are looking for a new mortgage or simply want to refinance your current home the first step you should always take is to make yourself familiar with the latest current regulations and offers set forth by the US government and other major organizations. This information changes regularly in regards to the current economic status of both the country as a whole as well as specific development areas. This can either give you a major boost in your financing power or provide heavy restrictions highly dependent upon your current socio-economic status.
For instance, first time buyers recently under Obama’s support plan can qualify for up to $8,000 of government support towards the purchase of their first home. Researching this information with your own local government and searching online for any federal updates should always be the first step in your process to achieving the best deals possible.
Determine What You Can Afford
Once you become acquainted with the various laws and regulations currently facing your area, your next step if you are looking to secure a new purchase should then be to carefully examine your own purchasing power and what type of home (as well as which area) you could best afford. Generally speaking, in order to obtain the best possible rates on any mortgage you need to be able to provide anywhere from a 10% to 20% down payment of the total price of the property in addition to any other closing fees or costs the purchase may incur. While purchases may be made with less amounts (normally for this, your credit must be perfect or very near perfect), the rates are generally substantially higher and never in the best interest of any home buyer. Be sure to look at the interest rates and closing costs before signing any contract.
Looking at It Realistically
Although it may be daunting to accumulate so much money for the purchase of a home careful selection of property locations can assist greatly with this. If you do not have a major income, for instance, attempting to purchase a $150,000 home may not be a good choice. A $50,000 home, on the other hand, can provide a much more affordable purchasing scheme. No matter which state you are in, you can easily locate the proper property for your particular budget, especially if you are willing to expand your searches into places that have suffered in particular as of late (such as northern Las Vegas) or are willing to invest a little extra money in repairing a potentially poor quality foreclosed home.