How To Get The Best Mortgage Rates, Five Smart Moves

October 2nd, 2010 - 1:01 am ICT by Angela Kaye Mason  

Oct 1 (THAINDIAN NEWS) There are five basic tips which can help you find the best mortgage rate, for those who are in the market for a mortgage.

Smart move number one would be to shop around. Since financing your home is likely one of the largest financial decisions which any person can make, it is important to search for the right mortgage even harder than you would for a car or vacation. Compare interest rates, search the internet, and newspapers, and try for fees of less than one thousand dollars.

Another smart thing to do is fix any problems which you may have on your credit report. Since the credit score is the most important factor in determining how much a loan will cost you, this is a very important step. Your interest rate will be much higher with mistakes on your credit report. Notify Equifax, Experian, and TransUnion, and get a copy of your report so that you can begin to fix any issues.

A huger part of keeping your credit score high is paying your bills on time. Thirty-five percent of your credit score depends on whether or not your bills are late. Even those who are only a few days late can look like a big credit risk.

Paying down your credit card debts is another good idea. A third of your credit score depends on how much of your available credit is already being used. In instances where you owe six thousand dollars on a ten thousand dollar limit card, over half of your credit is used up.

The fifth and last smart move is to not apply for any new credit, such as cards or consumer loans. inquiries into your credit history can lower your score by up to twelve points for every time your credit is checked. These points add up quickly and lower your credit score.

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