According to Freddie Mac the average 30 year fixed mortgage rate is up more than 2% since the beginning of 2022. So what can a home buyer do to help get a better rate? Try some of these tips to help:
- Go to a lender or a banker and see what different loan programs they have. Do they offer a first time home buyer loan program with a lower rate? Would an ARM (adjustable rate mortgage) be the better option for you? There are different loan programs with different rates and closing costs, it’s not a one size fits all kind of thing.
- Build up your down payment. Most loan programs (I said MOST) require the home buyer to put a down payment down. Will a larger down payment help with a lower rate? Is it possible for a buyer to “buy down” their rate?
- How is your credit score? The better the score, generally, the better your mortgage rate. Would it be better for you to build up your credit score and then begin house shopping?
With what’s listed above, you should talk to with your Buyer’s Agent and with your lender. And remeber to ASK QUESTIONS. If your buyers agent or your lender is getting annoyed with you asking questions, then FIND ANOTHER AGENT/LENDER.
Need a mortgage lender referral? Just ask! We’d love to get you in touch with a great lender. Still looking for a buyer’s agent? We’d LOVE to work with you! Click here to see if a Realtor with Elysian Realty is right for you!