Those of you who own a house and want to get a mortgage against it at low rates of interest do not have a lot of time to make the big decision. You need to be swift, efficient, in top shape, and organized to land an interesting and attractive deal on home mortgages. Check your finances thoroughly and make sure everything is in order. Check for any weak points that may have potential to harm your application. Fill in the gaps and be well prepared before you step out to get that perfect deal you have been eyeing all along.
Here are a few tips that may help you in bagging a good deal.
1. Documentation: Have all your important documents at hand. Make sure your record is straight as an arrow. This has become increasingly necessary nowadays. Accordingly to new rules and regulations, stringent laws have been laid down. Especially for lenders. They have been asked to make sure the borrower has ability enough to pay back the loan he has borrowed. Lenders are going to great lengths to verify the same. If they find cracks in your record, they will not let it pass easily. You will either be rejected the mortgage or will be exploited on your weak spots.
The different documents that you may have to show are tax return, bank statements, investment accounts, W-2’s and assets in your possession. If you have had any unusual transactions through your account, you may have to explain that to the lending authority. Every major deposit and withdrawal will be put under the scanner so you have to be prepared with answers and explanations.
2. Fix a deal quickly: As soon as you find a rate which is good enough, do not let it go. The current trend in the market suggests that interest rates are going to go further up. There are no indications to suggest any fall in rates of interest anytime soon. So, if you get a rate you are comfortable with and the numbers seem to fit in your budget, do not wait to close the deal in anticipation of a better or lower rate in the near future. You may end on the left side of the ledger by doing so.
3. Bargain: There is no harm in asking for something better when you are not comfortable with what you have been offered. Make sure to bargain for prices, fees, service charges, and interest rate. There can be no harm in bargaining as you have nothing to lose. Competition in the market is stiff and you may get the numbers you want. Also, don’t forget to shop around and make inquiries in person. It is not necessary that the deal you are offered online or on the phone is final.
4. Credit Score: Lenders are definitely going to have a keen look at your track record. A clean record goes a long way. A good credit score will not only help you bag a good deal easily but it will also put you in a good position to bargain yourself towards a good interest rate.