While it may seem sensible to postpone a home purchase until interest rates fall, this prevents you from earning equity. And besides, who wants to rent forever? Here are some ways you can secure a competitive rate now.
- Increase your down payment. While 20% down will generally qualify you for the lowest rate for a conventional loan, bigger is always better. If 20% down seems too far away, consider checking out state and local down payment assistance programs. They’re all at one convenient site: com
- Improve your FICO score. Even a 20-point bump can save you thousands. In addition to paying down credit balances, be sure to check your credit reports to ensure no errors are lowering your score.
- Ask about a mortgage rate lock. A rate lock may be something to consider, especially if you think rates will rise before you find the right home. If possible, get a “float-down” rate lock. While these may incur a charge, it also means you can potentially get a lower rate than the number you originally locked down.
Core Bank can set you up with the tools and knowledge to learn about the different types of home loans and find the one that best fits your needs. Core Bank’s team of lenders are committed to helping you achieve your dreams, whether you’re ready to buy, build or refinance your home. Contact someone from our team and apply today!