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Do These 5 Things Now to Get the Lowest San Antonio Mortgage Rates

san antonio mortgage ratesKnowing how to get the best San Antonio mortgage rates can be challenging, especially when it’s just one of many considerations to make when buying a home. But you can start preparing for a meeting at your local bank or credit union today and get the lowest mortgage loan rates in San Antonio in the process. SanAntonioBankingRates has compiled five tips that you can start today which can help you pay less over the life of your San Antonio home mortgage loan.

#1. Improve Your Credit Score

This is the big one. Working on your credit score will pay off over the course of your life and the life of your mortgage loan. San Antonio mortgage rates are lowest for people with the highest credit score. Even a couple of points — say the difference between 698 and 700 — can make a huge difference in terms of the rate you get offered on your loan. Pay your bills on time and resolve outstanding credit issues that you have. This will increase your creditworthiness and make you eligible for more attractive loan terms.

#2. Reduce Your Debt

This part of improving your credit deserves special attention. No matter what the current mortgage rates in San Antonio are, you aren’t going to get the best rates if you have a mountain of outstanding debt. Your debt-to-income ratio is one of the biggest factors when it comes to evaluating whether or not lenders feel you can afford to buy a house. No matter how good your credit is overall, if you have a high debt-to-income ratio, you’re not going to get the most attractive rates. Work on reducing your debt and you’re going to qualify for far more favorable San Antonio mortgage rates.

#3. Save a Big Down Payment

Having a large down payment — somewhere around 20 percent — is one of the best ways to get the lowest mortgage rate possible. It also saves you money over the life of the loan because you’re paying a bigger chunk up front and thus not paying interest on 20 percent of the principal. It might mean that you have to kick buying your dream home down the road a few years, but it will save you thousands of dollars in the long run.

#4. Shop Around

When making the biggest purchase of your life it’s important to look around and see what everyone has on offer. Going to different San Antonio banks and credit unions to get pre-approved isn’t just good sense, it also lets you leverage one bank’s offer against another offer. Once you have a written pre-approval in hand, bring it around to the other financial institutions you’re investigating; let them know that you have offers on the table that they’re going to have to beat if they want your business.

#5. Job Stability

One of the biggest things that makes you a credit risk is not having a stable job with a steady income. The best time to apply for a mortgage is after you’ve had the same job for two years. If you’re self-employed this can really hurt your chances, so make sure that you’re documenting your income rigorously. Everyone else should wait to change jobs or careers until after they’ve been approved for a mortgage. Having a spotty and unstable work history is one of the best ways to lose out on the best San Antonio mortgage rates.

Get your current metaphorical house in order and you’ll be living in the home of your dreams in no time.

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