Here Are 3 Tips to Help You Secure a Favorable Mortgage Rate

The best way to ensure you get a good rate on your mortgage is to become an informed buyer. The more you know about mortgages, the more you'll be able to save, and that doesn't just mean knowing where to find the best interest rate. 

While interest rates play an important role there's always more to a mortgage than just the interest rate. Here are three things you need to know about mortgages to make sure you secure a good rate.

Understand The Fees Involved - And How To Avoid Them

Aside from the interest rate, the biggest factor affecting the price of a mortgage is often the fees involved. Do some homework if you want to compare fees charged by different lenders. 

Sometimes, it's possible to have these fees waived or removed. For example, if you end up moving your mortgage from one lender to another, the first lender will often charge some sort of mortgage discharge fee. In many cases, the new lender will be willing to cover that fee as a price for obtaining your business.

Understand How The "Lock-In" Process Can Affect Your Interest Rate 

When you get a quote for a mortgage, each lender will offer a "lock-in period" in which the interest rate for the mortgage stays the same.   Interest rates fluctuate so often, this "lock-in period" ensures that you end up paying the same rate you were initially offered. Make sure your lock in rate will extend past your close of escrow date.  Many lenders will charge a fee to extend the lock in period if your escrow is extended. 

Understand How Your Credit Score Affects Your Mortgage Rate

Generally, a better credit score means a better mortgage rate.  Talk to a few lenders first to determine if they have a loan program that fits your needs and if you feel like you can have a working relationship with them.  Every lender will want to know your credit score and see your credit history. Instead of letting each lender make a credit inquiry, request a copy of your credit report that you can show to each lender and then decide who you want to go with.  After you pick a lender then they can pull the credit report.  

It is  always important to shop around and compare rates, the required down payment, the terms of the loan and the fees charged for the loan  when you're looking for the best mortgage deal.