Are you gearing up to make a home purchase, or perhaps the current interest rates are giving you pause in your selling plans? Wondering how to secure lower interest rates to make the most out of your real estate journey? Here are three powerful methods to help you achieve just that.
1. Boost Your Credit Score:
Your credit score plays a pivotal role in determining your interest rate. Aim for a higher credit score to enjoy lower rates. To enhance your creditworthiness, focus on paying bills promptly, managing your debt responsibly, regularly review your credit report, and limit new credit applications. Pro tip from our friends at MortgageRight: Maintain a credit card balance at 30% or less of the limit. For instance, if your card has a $1000 limit, strive to keep the balance at $300 or below. Additionally, having a zero balance can give your credit score a positive boost.
2. Compare Lenders:
Different lenders offer varying interest rates and terms. Don’t settle for the first offer you receive. Request quotes from multiple sources, thoroughly understand your loan options, and don’t hesitate to negotiate for a better deal. Exploring different lenders can open doors to more favorable interest rates.
3. Increase Your Down Payment:
A larger down payment reduces the lender’s risk, often leading to a lower interest rate. Ramp up your savings efforts, explore windfalls or gifts, and check out available down payment assistance programs to ease the financial burden.
Our preferred lender at MortgageRight has a game-changer: the buydown. Instead of sellers covering closing costs, they contribute to the buydown fee. This can result in significant savings, reducing your monthly payment by a substantial amount. Now, that’s what I call a smart investment!
If you’re ready to kickstart your home buying process, my team is here to guide you. With more than two decades of experience in the Rocket City, we have invaluable connections to help you get started. Visit our website at amandahoward.com or give us a call today at 256.799.9000.
Don’t forget to subscribe to our YouTube channel to stay updated on Amanda’s personal real estate advice and lifestyle content.