How can I get a great deal on a mortgage?

How can I get a great deal on a mortgage?

Janet Bodnar (Deputy Editor, Kiplinger’s Personal Finance) gives expert video advice on: How can I get a great deal on a mortgage?

To get the best deal on a mortgage, start about six months ahead of time before you want to apply. Check your credit report, check your credit score, and make sure it's a good one, because the better your score, the lower the rate you're going to qualify for. So if you want to spiff up that credit rate a bit, this is the time to do it. Make sure you're paying your bills on time; pay off some of your outstanding debt, that sort of thing. Another thing to do if your credit isn't so great is to look into a loan that is guaranteed by the Federal Housing Administration. You might be able to get a better deal than just going out into the market on your own. Another thing you can do is to make a down payment, to put at least twenty percent down, because the more you put into the house, the more favourably a lender is going to look upon you. It really is a good thing, as a lot of people have gotten into trouble with zero down payment mortgages. If you put ten percent or twenty percent down, you're going to get a more favourable loan rate.