If you have determined that you’re at a good point to start looking to buy a home in Seattle, you’ll likely need to begin researching how to get the best deal on your mortgage. While interest rates continue to remain low, finding the best mortgage option can still be cumbersome, but there are a few steps you can take to save you time and money. One of the biggest factors in determining if you will be approved for a loan, and what your interest rate will look like is your credit score. Reviewing your credit score at least once a year is highly recommended, so that you are aware of any issues or errors that could be improved to give you the extra few points you need to qualify for a better interest rate. Another factor that lenders take into account when you apply for a loan is your debt-to-income ratio. This is your income compared to how much money you owe, so if possible it might be a good time to decrease your debt or increase your income. If you can make larger payments on those credit cards, or pay off a loan, it could save you some money down the road.
While many real estate agencies can provide you with an affiliated lending bank, it is always wise to shop around for lenders, and ensure you’re getting the best rates available to you. Shopping for lenders can be as simple as requesting a quote online from several local companies, and comparing your findings. If you’re interested in learning more about your mortgage options, and ready to start the home buying process, contact your local real estate agent today.