Over the first few months of 2015, there seems to be new, positive trend on the raise – the interest rates for mortgages and other financial products sought after by homeowners, seem to be falling. This is what stimulates a lot of people to look for new home and shop for most suitable mortgage. If you want to be sure you have secured the best mortgage, follow these simple tips:

Prepare Credit Your Report

The main factors lenders use to determine whether you are suitable for a mortgage is your credit score, so your report must be in place if you want to get approved fast and get the best interest rates. On the other hand, if something is wrong with it or there are any errors, you could be missing out valuable deal.

Experts suggest that you should prepare your credit report at least six month before the actual loan application. This will give you enough time to fix any inaccuracies and even improve your score, if needed.

The Ideal Ration between Debt and Income

When you compare the amount of money you earn with the amount of money you are expected to pay for your mortgage forms the ratio between debt and income, so your main goal is to improve it. Try to pay off as many of your existing loans and/or consider adding more to your credit card. This will not only reduce the amount of money you pay every month, but can even influence your mortgage application.

Consider Making Big Down Payment

The bigger down payment you are able to make for your mortgage, the more attractive terms you will get. Most of the time lenders require payment of between 5 and 20 percent, so if you do smaller down payment you may actually end up paying extra fees, as this increases the risk for your application.

Have you Considered Hybrid Mortgage?

Most of the mortgages are fixed for period of between 15 and 30 years, but if you do not plan to permanently reside in your house these terms aren’t really suitable. In such cases finance experts suggest going for hybrid mortgage, where there are much lower interest rates. For example, if you plan to sell your house within the next four years, a hybrid 5/1 mortgage is great choice and you are expected to pay interest rates of about 1%.

Seek Lenders Online

The best and definitely most convenient way to shop for mortgage is online. Many people go for lenders recommended by the real estate agencies, but this doesn’t really guarantee the best mortgage rates. Go online and try services like Lending Expert, where you can compare mortgage rates from multiple lenders with just few clicks.

Detailed Applications Truly Make Difference

With the new family home around the corner, many people often do no put too much time preparing their mortgage applications and this often leads to delays. Prepare all documents you need and provide to the lender, so that your application is processed faster.

Locking on the Desired Interest Rate

Most of the mortgage lenders offer flexible interest rates, which move with the global finance market and you can choose to lock them down at any moment you desire. While this can save you a lot of money, it’s considered risky move and most people prefer to lock their interest rates when their application is approved. Carefully consider both options and choose the one that’s most suitable for your budget.