Finding a perfect home and landing an affordable home loan in Lake Oswego sound like a dream come true for many people. Like all good things, doing so takes more than just luck. That, however, isn’t to say that you need to move mountains.
Here are four guaranteed tips from Primary Residential Mortgage, Inc. to land the cheapest mortgage rates while buying the home of your dreams.
1. Prepare a beefy down payment.
It’s certainly not an easy thing to save up the recommended 20 percent down payment, but it’s all worth the pain. With this amount, many lenders will be willing to offer you a very friendly rate, plus you get to avoid paying mortgage insurance.
2. Work on your credit score.
Your credit score reflects whether you are responsible or not. A polished credit score means that lenders can trust you, so they’ll be willing to give you a mortgage at a friendly rate. So if your current credit score isn’t that impressive, you may consider sorting out any issues with it to attract the best rates.
3. Consider taking an ARM.
If you have found a home you want but know that you’re not going to be living in it for a long time, consider taking an adjustable rate mortgage (ARM). An ARM usually has lower rates that increase in time. If you can sell the home before the rates increase significantly, you’ll have saved a lot in interest.
4. Shop around before applying.
If you have a beefy down payment and a great credit score, most lenders will want to offer you a mortgage. But don’t just choose the first provider. Rather, do some research on what deals lenders in your area are offering and choose the most affordable one.
Finding a cheap mortgage can save you a fortune in terms of interest. It’s something you can do if you are determined, patient and diligent.