1st Eagle Mortgage and Loan Company in Chicago Northfield Illinois


5 Tips to Get the Best Mortgage Rate

1st Eagle Mortgage breaks down 5 ways to improve your chances of getting the best mortgage loan rate on the market.

There are some great mortgage loan options out there, but you have to qualify for them, and that can take work. To be eligible for better loan rates, lenders look at your credit, employment history, location of your property, and much more. So what can you do to get the best mortgage rate possible?

Learn 5 tips from 1st Eagle Mortgage to find out.

1: Improve your credit.

Giving your credit score a boost is one of the most important things you can do to get a good loan, and it also increases your chances of getting a loan in the first place.

To improve your credit score, pay off as much as you can on revolving account balances, catch up on past-due payments, and don’t miss payments. Another trick for improving your score quickly is to ask for a credit line increase and don’t spend any of it.

If you can improve your score even a little bit, it can make a huge difference in your eligibility for a good mortgage loan. With that said, if you have less-than-perfect credit and have done everything you can to improve it already, 1st Eagle Mortgage can work with you and connect you to multiple loan options that you could be eligible for.

2: Build steady employment.

It’s best not to switch jobs or quit your job right before you apply for a loan, because lenders look at your employment history and want to know that you have steady income coming in.

So unless you’re getting promoted into a new role with a salary increase, it’s best to stay where you’re at and keep things consistent while you’re going through the home buying process.

3: Save for a down payment.

The more cash you put down on your home upfront, the less you need to borrow from a lender, which also means there’s less risk you pose for them. If you pose less of a risk for them, you will probably also get a lower mortgage rate.

While sometimes you can get away with putting down a smaller down payment, experts suggest putting down at least 20% of the cost of your home. On the other hand, you don’t want to drain your savings to pay for a down payment. Keep in mind you’ll also need to pay closing costs, and lenders typically check your account at the end of the loan process to make sure you have at least two months of mortgage payments ready.

So instead of relying on savings, find other ways to raise money, like getting a side gig or selling that old baseball card collection of yours.

4: Shop and compare multiple different lenders.

It’s essential to not settle for the first loan option you’re presented! Look around and compare multiple different rates, because rates can vary drastically from one lender to another.

When you work with a mortgage broker like 1st Eagle Mortgage, you’ll get connected to multiple different lenders you wouldn’t have access to otherwise that might be the best financial option for you. The team of mortgage brokers at 1st Eagle will help you vet through options and find a loan that best fits your long-term financial goals and needs.

5: Consider a 15-year mortgage

Since shorter-term loans pose less of a risk than the traditional 30-year mortgages do, you may find a better rate when exploring this option. However, know that your monthly payment cost will be higher. You could also consider doing an ARM (adjustable-rate mortgage), which may have a low rate, but also keep in mind the rate could increase during your loan term.

Consider working with a mortgage broker to get connected to multiple loan options, regardless of your financial situation.

While you want to make sure you do everything you can to improve your credit and have a solid financial and employment history, know that at the end of the day, you can still have great options for mortgage rates.

There are several benefits to working with a mortgage broker, including the fact that they will find you a loan that fits your needs at the best rate on the market. Whether you’re a first time home buyer, downsizing, refinancing, or a commercial property owner, their goal is to make your loan application process as stress-free as possible for you.

To learn more about 1st Eagle Mortgage, visit our website.

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