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Obtaining Best Mortgage Rates on the Market


If you have been thinking about getting a home because interest rates are so low, then you are not alone.  People across the country are taking advantage of these low rates to purchase new homes or do a mortgage refinance.  Lenders are being more competitive and offering different incentives to get your business.  However, loan requirements have changed and new federal guidelines and regulations mean that there is more documentation for loans, especially for someone looking at a bad credit mortgage.  There are so many different loan products that are available that here are some tips to getting the best mortgage. 


First, understanding that there are more documents that are required nowadays than there ever used to be when you apply for a loan and gathering as many of them as possible before you apply for the loan will help things go smoothly and more quickly.  You will need such things as current bank statements and paycheck stubs, W-2 forms, verification of employment, and income tax returns.  You will need more documentation if you are looking into a bad credit mortgage.  Remember, all of this paperwork is mostly because of the federal regulations, so your lender is just doing his job when he asks for more. 


The second tip is to comparison shop when you are looking for a lender.  Because lenders are getting more competitive, you may be able to find a lower rate or lower closing costs as you go from one to another.  One of the most important things is to ask questions about what is being offered so you are sure to be comparing the same loan products from different lenders.  Be sure to ask about the APR and not just the simple interest rate, because the APR will factor in the fees and is the effective interest rate. 


Third, keep your communication open and honest with your loan officer.  He may ask questions that can be hard to answer about your financial situation, especially if you are looking at a bad credit mortgage.  He is simply trying to determine which loan product will work the best for you, and asking hard questions can help weed out the programs that you won't qualify for and that won't meet your needs.   


Whether you are doing mortgage refinancing or purchasing a home, there are many effective loan products that are available to you.  You can get the best mortgage deal around if you follow these tips to gather your documents, shop around for the best interest rate and loan products, and to keep an open communication with your lender.