Even though the housing industry is still in a slump that does not mean that you cannot get a very good interest rate and deal on a house in 2009. The most obvious thing to do is to shop around for the best rate that you can find. While that is true, there are some other things you can do to help in the process.
Check your credit score. You can check your credit score and report once per year for free. If you are in the market for a house, then now is the time to exercise that right. The higher your score, the lower your interest rate will be so it is worth looking at in advance of the process.
The Federal Trade Commission has a web site where you can find out how to get your free report. Go to: www.ftc.gov/freereports. You will also find detailed instructions on what to do if you find errors or other misinformation contained in your report.
Clean up your credit report. Once you have checked your credit score, look at the accompanying credit report. If you see incorrect items on it, you need to clean these up so that they do not negatively affect your ability to get a great rate. While this can be a time-consuming and protracted task, it is well worth performing. In fact, you will want to delay moving ahead in the process until this is completed. It is that important.
Make positive changes to your financial picture. There is nothing like a clean financial picture that makes financial institutions easy to work with in obtaining a mortgage. Take the time to pay off small, high interest consumer loans like credit cards, etc. The best thing here to remember is that a strong financial picture shows low overall debt and a high amount of cash and assets on hand.
Consult a Realtor. One of the many benefits of working with a real estate agency or broker is that they can direct you to the best sources of financing. It stands to reason that since they deal with those who need financing on a daily basis, the probably have some knowledge of where to you go to obtain a great rate and service.
Compare and Be Aware. Approach the financing portion of buying a house as you would an interview only you will be doing the interview. Find out from two or three sources what the going interest rates are and what the details are regarding the loan and any origination and other charges that you will be required to pay at closing. You might find some very attractive options.
If you use these steps you can find a great interest rate on a new house mortgage in 2009.
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