1. Make a Comparison
If you have a decent credit score, there is no reason why you should accept the first mortgage offer that comes your way. Remember that a mortgage is just another financial product from banks and you have every right to make a comparison of the features and prices before settling for the best mortgage deal. It is a fact that your broker would prefer you to take a mortgage loan from a bank of his choice, but the choice is ultimately yours. There is no need to hurry as you can take your time to find the best deal.
2. Pay More as Down Payment
It is no secret that banks love to offer the best mortgage deals to customers who not only have a good credit score but also ones who are ready to a high down payment. Most customers are interested in securing as much as possible from the bank so as to pay smallest down payment. If you can cobble together a decent amount of money upfront, you are likely to get a better mortgage deal. Also, you are charged lower premium on insurance done by the bank on the loan amount.
3. Beef Up Your Credit Score
It goes without saying that the basis of all mortgage approvals is the credit report of the applicant. If you happen to have a decent credit history, you can not only have the best mortgage deal but also more choices from different lenders. As you will be repaying interest and principal amount over the next 20 or so years, it is prudent to make some efforts to improve your credit score. Even a small reduction in interest rate can result in a saving per month that adds up to a huge amount by the end of repayment of the moan amount. If you are applying for mortgage in near future, make sure you work up your credit score before that.
4. Make Sure You Read the Details Carefully
Many people are s obsesses with low-interest rates that they overlook the rest of the terms and conditions and quickly sign the contract. This proves to be a costly mistake when they later find out that their lender has slapped them charges that they were not told about earlier. There are many types of fees applied to the account of the borrower that are not disclosed at the time of application. Discuss every detail up front and ask for the final monthly installment that you would be required to pay.
5. Fixed or Variable Rate of Interest
There are two types of rates of interest being charged by banks offering mortgage loans. They are either fixed or adjustable depending upon the market circumstances. If the current interest rate is at its lowest and you are taking a mortgage loan for a long time period, you can easily opt for a fixed rate. On the other hand, if the current rate is high and you are sure that it would come down in near future, you can ask for n adjustable rate of interest.