Here are some helpful tips on how to get the mortgage that best meets your needs.

Know your credit score

Your credit score will help determine your loan rate, which is a number that ranges from 300 to 850 gives lenders a picture of how well you manage debt. Credit scores are often available through your financial institution’s bank, loan or credit card statements or directly from the three credit reporting agencies Equifax®, Experian®, and TransUnion®. See a score that may need to be improved? Visit annualcreditreport.com to receive a free copy of your credit report before you apply for a mortgage loan.

Which mortgage loan is right for me?

Consider the type: 

• Fixed-Rate Mortgages keep the same rate over the life of the loan, with equal monthly payments.
• Adjustable-Rate Mortgage (ARM) rates could adjust up or down every few years. There is often a cap on how much the rate could adjust.
• First-Time Homebuyer Loans typically comes with a competitive rate. Benefits include low or no down payment requirements as well as programs to help you offset down payment or closing costs.

How do I know what mortgage lender to use?

Do you prefer to work with a smaller lender with a great rate who will take the time to get to know you? Or is your priority getting the best rate with less personalized service? You can ask friends, family or your real estate agent for referrals. Then check online review sites and see what others have to say about the lender. You should feel comfortable with the lender and the mortgage you choose. Before you sit down to talk terms, be prepared to ask, and get answers to, two important questions: 

1. What will my full payment be? When estimating your monthly mortgage payment, include property taxes, homeowners insurance, and possibly Homeowners Association (HOA) dues. A mortgage calculator can help you get an estimate of your actual payments. 

2. How much are closing costs? Closing costs depend on the price of the home and the amount of down payment. By law, those details are required to be included in your loan estimate, which you should receive within three days after you submit your loan application.