Look to our six tips for landing the strongest mortgage rates you’re eligible for:
Compare multiple lenders. Get quotes from at least two lenders for the mortgages you’re interested in.
Get your credit score in order. There’s no set minimum credit score for mortgages, but a score of 740 or higher can open the door to competitive interest rates, low down payments and government programs, like FHA and VA loans. There are options for bad credit but they’re limited.
Consider paying for points. Crunch the numbers to see how much paying points upfront can save you in the long run, especially if you don’t plan to keep your home for the full term of your loan.
Qualify for special programs. Government, state and local programs may offer lower rates and more flexible terms than a traditional mortgage.
Save at least 20%. Often the larger your down payment, the lower your interest rate. You’ll also avoid having to pay PMI.
Lower your debt-to-income ratio. Your total debt load affects the loans you qualify for. Try to pay down credit cards or loan balances when you’re shopping for the best rate.