Car Negotiation Coach

As you know, the housing bubble has burst, and homes have dropped significantly in price and value over the past several years. This has essentially made it a buyers’ market, and for those who have saved their money, it’s never been a better time to find their dream home.

There are several different ways to find the best mortgage rates depending on your budget so you can purchase the house of your dreams.

How to Find the Best Mortgage Rates

Save up for a down payment: Long gone are the days where you could buy a house with no money up front. Banks are no longer accepting 0% down. You will now need to save between 10% and 20% of the purchase price to show the bank and the sellers that you’re serious about buying a home. This means if the home you’re looking to buy is selling for $300,000, you should have between $30,000 and $60,000 saved up for your down payment.

See how much home you can afford: There are various tools available online that will help you calculate and crunch numbers to see how much home you can afford. Calculators will allow you to see what price range fits your budget depending on your desired monthly payment or how much you should expect to pay for a house with a certain selling price along with your down payment. Make sure you are comfortable paying this amount every month.

Have an emergency fund saved up: Job stability is so rare nowadays, and coupled with potential emergencies that can wipe out your income, you should have an emergency fund saved up. This should be between 6 months and a year’s worth of bill payments, including your mortgage.

Show a steady income: Don’t change jobs if you’re about to apply for a loan.  Income history and stability is almost as important as the amount of income.

Research mortgage rates: The best mortgage you can go with is a 15 or 30 year fixed rate mortgage. This means you’ll have the same interest rate for the duration of your mortgage. Your mortgage payment will remain the same every month.

Consider FHA Loans: If you feel that saving 10% – 20% of your purchase price is too aggressive, you should see if you qualify for an FHA loan. FHA loans can help you afford a home by providing you with a lower down payment, lower closing costs, and easy credit qualifications. Each FHA program differs per state and has different requirements, but you could potentially buy a home with only 3.5% down.

Find home owner assistance programs: If you’re looking for a house in a particular county or city, check and see if they have home owner assistance programs. These types of programs can help you by providing lower rates, taking care of your closing costs, putting up some of the down payment and more. Some cities have incentives for people who work in that city, and others have programs for lower income families.

Consider developing neighborhoods: If you’re moving to an established area, chances are you’re going to pay more to live there. Developing neighborhoods that are bringing in businesses and want to get more people moving in will be willing to help you find the best mortgage rates.

Keep your credit clean: A good credit score will help you find the best mortgage rates with any lender. Your credit score will show lenders that you’re reliable to pay the money back on time. Pay your creditors, don’t open up a lot of accounts at once, and always check to make sure no one else is using your identity.

The inventory is out there for interested buyers, so it’s your job to make sure you’re getting the best mortgage rates possible for your new home. Remember, only buy what you can afford to pay for.

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Why is it free? Because buying a car is something almost everyone has to do and I strongly believe the process is designed to confuse and take advantage of consumers. I'd like to level the playing field and give everyone a chance at a fair deal.