Planning a home purchase in New York is always a busy time. Most individuals and couples spend weeks looking for the ideal home, but they forget the single most important factor in both qualifying for a mortgage as well getting the best interest rate.
The Importance of Low Interest Rates
In case NY home buyers hadn’t stopped to think about the importance of getting the best mortgage rates possible, just think about the long-term implications. With even a half a percentage difference, you will pay tens of thousands of dollars in additional interest with a traditional 30-year fixed loan.
While you will still have lower average interest rates for a 15-year fixed, you have much higher monthly payments, which may put these loans out of range for many home buyers.
Ensuring that you are as well-qualified as possible is critical to get the best mortgage rates and to pay the lowest possible amount in interest over the term of the loan.
Clean Up Credit
The best mortgage rates are available to buyers with a 760 score or above, but this can vary slightly with lenders. By aiming to work to improve your credit score to that 760 level, any loan option selected will be at the best interest rates on the market.
To clean up your credit, review your credit reports, dispute errors and work towards paying off credit cards and other debts. This is not easy to do over a few months, but by working on it for several months or even a year, it is possible to easily raise scores by tens of points, which can make a big difference.
Take the time to review your credit reports early. Talk to your lender in NY, he or she is typically able to provide information on how to boost our credit score well in advance of looking for a home.
To learn more about how the lenders at Guaranteed Rate can work with you to get the best mortgage rates in NY, see us online. Information and an easy online application are available at Guaranteed Rate.