Before purchasing a private property like a house or an office space, it is important that you know how to find the best fixed rate mortgage. Making sure that you do not buy properties with high interest rate mortgages is necessary to save huge amount of money in the future. By learning how to get a low fixed rate mortgage can help you save hundreds of dollars a month. In addition, it can help you lessen mortgage premiums that you need to settle. Below are the simple steps and tips that you can use to find the best fixed rate mortgage.
Evaluate the Free Credit Score
It is important that you evaluate your free credit score before you purchase a property because this will be the basis for your mortgage rate. When checking the credit score, it is essential that you look at the numerical value as well as the detailed report. To get the numerical value, you need to hire a professional who will compute the credit score. You must allot $5 to $10 for this service.
Look at the Problematic Areas in the Credit Score
If you want to ensure that you get the best fixed rate mortgage, it is important that you assess and look at the problematic areas in the credit score. If you get a score of 720, it does not mean that you can no longer improve your score. Some of the areas that you need to consider if you want to enhance the credit score to 750 include high credit balances, late payments as well as false information.
Improving the Credit Score
To enhance the credit score, it is essential to look at false information in the report. If you see wrong information in the report, you should contact your credit-reporting agency immediately. Another way of enhancing your credit score is by requesting the credit card company to increase your credit limit. In addition, you can also use another credit card for minimal or limited purchases.
Raising the Down Payment
Another effective method of getting the best fixed rate mortgage is by increasing the down payment for the property that you will purchase. It is necessary that you provide a 20 per cent down payment to decrease the mortgage rate. However, it will be helpful if you increase your down payment to at least five per cent. Above all, to find the best fixed rate mortgage, make sure that you pay the property within 15 to 20 years.