Dave Skow, Sr Loan Officer
@dave_skow
you need to provide more specifics ...loan amt / value / credit score / type of loan etc...
Jason T Hull, Financial Advisor
@JasonHull
- Check your credit score. Go to www.annualcreditreport.com and check your credit to make sure that there's nothing wrong with it.
- Pay down other debts.
- Make a bigger down payment on your house.
- Shop around for a mortgage. Don't be afraid to talk to multiple lenders.
Stephen Gressock, Member
@stephencgressock
This question could mean multiple things, but I'll go out on a limb here and say you're asking how to get a better % rate on a current/future home loan. There are a few ways to do this and I'm happy to help you. The Great Recession hurt a lot of us, and as it hit, the %'s for many credit rates rose through the roof. It's harder for us to sign for a car for our kids because of the rates, secure a loan at a rate you'll know you're able to fit into your financial schedules, or even mortgages. There are a few things I'd like to go over with you below.
1. The most important way and probably the best, would be to increase your credit score. It's not easy and we all know this, but making small purchases on a credit card just to pay them off immediately will increase your credit. Checking your credit score may reveal debts or collections you may not know you have, and you can resolve these by contacting a creditor to increase your credit score.
2. In the credit application, do NOT hide things such as credit problems, criminal history, or similar things you might think matter on the application. The lender most of the time is only interested in seeing that you can make the payments, and after doing background checks only to discover you had credit fraud history, these things can delay the process and work against you. You need to be prepared to disclose all assets and income, including holiday pay and bonuses. Better to be safe than sorry.
3. Don't be afraid to shop around. There are many lenders out there and they will all give you a different rate. Don't hesitate to ask your current lender for a better rate, either. Shopping around isn't frowned upon, and it's one of the most important things you can do when securing a 30 year payment plan. Remember that you want the lowest payment each month, no matter what.
4. Making a large down payment can make you stand out to lenders. It shows extreme responsibility and authority, and can make the application process move that much faster. The bigger the down payment, the lower your rates will be. This works for many things, not just loans so keep that in mind as well. The best part is that it also shaves off the amount you owe in addition to receiving a lower rate than expected.
5. If all else fails you can just wait for rates to go down, and use all this information to secure the lowest rate you find. You don't always need the biggest home either. A cheaper home will allow you to save a larger amount each month, and that can be a benefit in more ways than just a down payment.
Good luck to your endeavors, and I hope I answered your question. Get out there and find that new rate!
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