With the onset of another year, homeowners and buyers have renewed their efforts to get low mortgage rates. Acting right and keeping finances under control can help you obtain a low rate of mortgage. The year 2014 is having specific real estate trends and mortgage regulations.
Acting according to these regulations would help you get the desired mortgage rates. This article shares some valuable advice to help you get low rates of mortgage in 2014.
Document your finances
Lenders are likely to be more diligent when financing home loans this year as the new regulations of mortgage have come into effect from January. The rules force the lenders for verifying that the borrowers have the capability of repaying their loans. It is important to keep good records of investment accounts, W-2s, tax returns, bank statements and overall finances. Be prepared with an explanation for any unusual account deposits.
Lock a rate at the earliest
Rates are expected to increase this year since it is expected that the Federal Reserve would reduce the economic stimulus program’s pace, which has helped keep the rates low for long. If you have plans for getting a mortgage, lock the rate at the instant you feel the numbers to be okay.
Refinance now in case you still can
In 2013, many homeowners missed the opportunity for refinancing at a low rate as the rates jumped. However, people who are paying interest of over 5% on home loans still can go for refinancing. In case you are confused about whether or not you can save with a refinancing, trying out would not hurt. Visit a loan officer and discuss whether refinancing would make any financial sense.
Buyers should use their bargaining power
With the rise in mortgage rates, lenders had to loose a major part of their refinancing business. In 2014, the attention of lenders is going to shift to homebuyers and there would be a fierce competition among the lenders for their business. Buyers are likely to gain bargaining power owing to this competition, and they should make use of this power to get the best mortgage rates in Montreal. Look on aspects beyond the rate of interest and go for the best available deal.
As a borrower, know your rights
Mortgage borrowers are likely to obtain many new rights this year as consumers, with new mortgage rules coming into effect this year. In case you face any issues with your servicer of mortgage, or lag in making payments, ensure that you know your rights and are making use of them.
Take care of credit
Nowadays, it is difficult to obtain a mortgage if you do not have a decent credit. 2014 would have a similar scenario. If you wish to obtain a Desjardins mortgage, take care of your credit score and history until the loan closes.
These are some effective ways in which you can acquire a low rate of mortgage. These tips would help you get a satisfactory mortgage rate in 2014.
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