How to Shop for a Mortgage if You Have Great Credit
If you’re a prospective homebuyer with great credit, you may be thinking you won’t need to look far to secure financing for your home purchase. It’s likely that you’re right in that you’ll easily find an institution that’s willing to give you a loan. But are you getting the best deal? Having great credit puts you in a unique position to access the lowest interest rates and the ability to pay down a mortgage quickly. Here’s a closer look at what you need to know about financing for consumers with excellent credit.
Ensure that you still have great credit: After the collapse of the housing market, lender perspectives have changed on credit ratings. Once, a score in the high 600s was considered good enough to qualify for a regular mortgage. Today, credit in the high 700s is what’s required to be considered for good credit deals. Take the time to look at your credit report, address any issues or inconsistencies, and find out where your current scores fall vis-à-vis the market.
Aggressively consider interest rates and other incentives: When comparing mortgage options, look at the loan’s big picture. What is the interest rate? Is the lender offering any incentives, such as reduced closing costs? Are there other costs, related to the closing or to private mortgage insurance (PMI), that vary? What is the lender’s reputation for working with you based on your loan officer’s recommendations and online customer reviews? Make sure that both the institution and the financing vehicle make sense for you.
Look beyond the traditional thirty year mortgage: With interest rates being relatively low and housing prices still in the buyer’s favor, it may be possible to pay off your mortgage faster than a traditional thirty-year, fixed -rate mortgage would allow. Look at the payment structures of shorter-term loans. Many buyers are surprised to learn that with good credit, it’s possible to afford a fifteen year mortgage instead.
Revisit how much house you can afford: Many prospective homebuyers with great credit are surprised by how low their monthly payments and total loan costs will be based on today’s interest rates. In some cases, they’re able to afford a slightly nicer property or more land than they originally envisioned.
Are you a homebuyer in the Las Vegas area that has great credit (or even not so great) and is considering options for a mortgage? Contact Sydnee Johnson Las Vegas Home Loans today to discuss your needs and options for financing your new home today.