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Home | Personal Finance | Mortgage | How to Get a Cheap Mortgage - The Basics
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Personal Finance - Mortgage
Written by Omie Ismail   
Friday, 11 September 2009 15:57
Article Index
How to Get a Cheap Mortgage - The Basics
Loan Amounts
Internet Quotes
Mortgage Brokers
Locking the Loan
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Getting a cheap mortgage has gotten is much easier with the Internet.  You have the ability to research rates, submit applications, and get a quote within minutes or hours.  However, getting a great rate means you have to be ready.  Here are some basics that you should know:

1) Your FICO score is the single most important factor in determining the interest rate you will be charged.  If you want the rates that everyone is touting keep your FICO above 720.  Don't know your FICO you can check Experian or one of the other rating agencies to get your latest score.  If you don't know your score, don't apply for credit.

If you have a poor score you should work on improving it before you decide to buy a house.  Buying a house at a high interest rate is financial suicide as Low Interest Loans - They Make a Huge Difference points out.

2) You need to know the exact amount that you are going to get for a loan.  If you are buying, you are going to want to have 20% down for your down payment to get the best rates.  Less than that and you will face Private Mortgage Insurance which will increase the cost of your loan and many lenders will charge you higher rates.  If you don't have 20% down, you might want to rethink whether you should be buying a house.  There's nothing wrong with renting and continuing to save up for your down payment.  Your 20% needs to be someplace (not daddy's pocket) where lenders can verify it has been there for a few months.

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Sleuth  - Mortgages thru local credit unions |2009-10-21 14:23:42
In this downturn of the last couple years our local credit unions were still in good shape. When you fill out a mortgage application they require a lot of information and documentation. This is why it takes longer but you also have the security of knowing that the bank you are dealing with is going to remain in good standing.
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