3 Steps to Secure the Best Financing Rates When Buying a Home

A new report has just been released identifying a foolproof 3-point plan that any homebuyer can use to secure the best financing rates when they buy a home. If you're planning on buying a home in the near future, it's important to start the process of securing financing early and to be proactive in order to get the most home for the least amount of money. Here's a breakdown of the 3 critical steps you must take to obtain the absolute best financing rates when you buy a home.

1. Start shopping for financing early. One of the biggest mistakes homebuyers make is waiting until they've found their dream home to start looking for financing. However, experience proves that this is actually one of the last steps you should take. The first thing you should do is start shopping for financing, long before you start actually looking at homes. This will give you the opportunity to compare rates from multiple lenders and potentially secure a lower rate. It's also a good idea to get pre-approved for a mortgage, which can help you know what you can afford and make you a more attractive buyer to sellers.

2. Know your credit score and work to improve it. Your credit score is one of the most important factors lenders consider when determining your financing rate. It's important to know your credit score and to work to improve it if necessary. Factors that go into your credit score include payment history, credit utilization, and length of credit history. If you're not sure what your credit score is, you can get a free copy of your credit report from each of the three major credit bureaus – Equifax, Experian, and TransUnion – once per year. To improve your credit score, try paying your bills on time, reducing your credit card balances, and avoiding opening new credit accounts.

3. Shop around and negotiate. Don't be afraid to shop around and compare rates from multiple lenders. There are several types of lenders you can choose from, including banks, credit unions, and mortgage brokers. Each has its own benefits and drawbacks, so it's important to do your research and choose the lender that's right for you. When negotiating with lenders, be prepared with information about your credit score and any other offers you have received. Be willing to walk away if necessary and don't be afraid to negotiate for the best rate possible.

In conclusion, the key to securing the best financing rates when buying a home is to start early, know your credit score and work to improve it, and shop around and negotiate. By following these 3 steps, you'll be well on your way to getting the most home for the least amount of money. Get this free report now if you would like to learn more.