Are you finding lots of discrepancies in the mortgage rates applicable within the same bank? Have you ever wondered why there is a difference and what it means? Here is the simplified meaning for this – Banks usually reserve low mortgage interest rates for their “special customers” and provide higher rates for others. This goes on to prove that you have to be in the “special” category to get a good deal from your banks. So how do you enrol yourself in this category? Follow these simple tips and you will see the difference.
Improve your credit score
The first and foremost point that a bank checks when you go for a mortgage loan is your credit score. This is nothing but a credibility check on you to see how well you have been paying off past loans, what loans you have currently, how effective are you with credit card payments, how many times you apply for a loan etc. Have a clean slate and pay off all your loans and dues within timelines to ensure that you have a respectable credit score. People with high score get a great deal of mortgage rates.
If you are an employee at a respectable concern for at least 2 years on the trot, you qualify for the “special category”. You should be able to provide a certificate proving that you have had stable income in the 2 years preceding to your loan application date, preferably from the same employer. This would give the banks a guarantee that you are a loyal worker and that your income is stable enough to pay off your debts. Your interest rates get attractive if you fall in this category.
In a nutshell, in order to get the best deal from a bank, you have to work harder and have a great credit rating. You need to convince the bank factually that you are a borrower who is worth the attractive mortgage deal.