At the time of this writing, mortgage rates have just hit 7.23%. That is the highest they have been in 22 years. If you are in the market for a home right now, you can still move forward with your purchase. But you are going to want to work extra hard to find the most competitive rates available to you. Let’s explore some ways you can make that happen.

Shortcuts to Lower Your Mortgage Rates When Purchasing a Home in Indiana

1. Give your credit score a boost. Since your credit score is critical in determining the rates for which you qualify, start by ordering your credit report. Check to see if it is accurate. Correct mistakes if you find them, and then look into whether there are other things you can do to improve your score. Do you have debts you can pay off? Credit utilization you can decrease? Can you get your rent payments or utilities payments factored in?
2. Increase your income if possible, or pay down your debts. Raising your income before applying for a home is probably a tall order, but it might not be impossible. Maybe you can take on some extra work in the gig economy to raise your monthly income. By doing so, you can improve your debt-to-income (DTI) ratio. The other approach to improving your DTI ratio is to tackle the debt end of things. Again, if there are debts you can afford to pay off right now, it may be worth it to help you qualify for a better mortgage rate.
3. Make a larger down payment. If your money is not all tied up in other investments, making a larger down payment when purchasing a home can be an effective strategy for reducing your mortgage rates. The more you pay upfront, the less risky a borrower you are perceived to be by your lender.
4. Choose the right loan type. Conventional mortgages are just one type; others include FHA, VA and USDA. In fact, those three programs are all backed by government agencies (the Federal Housing Administration, the Department of Veterans Affairs, and the US Department of Agriculture, respectively). They often feature affordable rates as a result, even if your qualifications are not as competitive as other borrowers’ might be. So, make sure if you qualify for one or more of these programs that you look into them. They could be the key to getting rates you would otherwise miss out on.\
5. Work with an Indiana mortgage broker to find competitive rates fast. Different mortgage lenders use different underwriting guidelines. That means that they may offer you different rates even for the same lending products. For that reason, it pays off to find the most competitive rates available to you. Chances are good they will not be the first rates you encounter. There are two ways you can go about that search: on your own, or with the help of a mortgage broker. A broker will check for the most competitive rates from their entire network of lenders, saving you time, and likely money as well.

Let Grandview Lending Help You Find Affordable Rates

As your Indianapolis mortgage broker, Grandview Lending can give you access to a network of lenders. We also can help match you with the type of home loan that will be most affordable in your scenario, and give you personalized tips for how you can improve your credit score and DTI ratio before you apply for a mortgage.

To get started now, please give us a call today at (317) 255-0062. We can help you buy a home with competitive mortgage rates anywhere in Indiana.