Scott Ellis | Loan Officer

Homeside Financial

  • Home
  • About
  • Blog
  • Resources
    • First Time Buyer Tips
    • First Time Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
  • Apply
    • Short Form
    • Full Application
  • Contact Us
You are here: Home / Mortagage Tips / The Summer Buying Season Is Here: 3 Tips to Help You Secure a Favorable Mortgage Rate

The Summer Buying Season Is Here: 3 Tips to Help You Secure a Favorable Mortgage Rate

August 5, 2014 by Scott Ellis

The Summer Buying Season Is Here 3 Tips to Help You Secure a Favorable Mortgage RateThe best way to ensure you get a good rate on your mortgage is to become an informed buyer. The more you know about mortgages, the more you’ll be able to save, and that doesn’t just mean knowing where to find the best interest rate.

While interest rates play an important role in determining the price of your mortgage, there’s always more to a mortgage than just the interest rate. Here are three things you need to know about mortgages to make sure you secure a favorable rate.

Understand The Fees Involved – And How To Avoid Them

Aside from the interest rate, the biggest factor affecting the price of a mortgage is often the fees involved. These fees won’t always be easy to find, so you might have to do some homework if you want to compare fees charged by different lenders.

Sometimes, it’s possible to have these fees waived or removed. For example, if you end up moving your mortgage from one lender to another, the original lender may have some sort of mortgage pre-payment penalty. You’ll want to make sure the terms of your existing mortgage loan don’t include fees like this before you refinance.

Understand How The “Lock-In” Process Can Affect Your Interest Rate 

When you get a quote for a mortgage, each lender will offer a “lock-in period” in which the lender guarantees the interest rate for your mortgage stays the same. Because interest rates fluctuate so often, this “lock-in period” ensures that you end up paying the same rate you were initially offered should you choose to take out a mortgage with that lender.

If you need a longer lock-in period of two months or more, many lenders will charge a higher interest rate for that provision. For this reason, it’s a good idea to be sure about the closing date of your sale so you can avoid missing out on the lock-in period or being forced to ask for a rate-lock extension.

Understand How Your Credit Score Affects Your Mortgage Rate

Generally, a better credit score means a better mortgage rate, but it’s important that you don’t damage your score while you’re shopping around for mortgages.

Every lender will want to know your credit score and see your credit history. The good news is that every inquiry of the same tyep (mortgage in this case) will only count as a single inquiry on your score.  However, if you have other types of credit pulled, like furniture or auto financing, then too many inquiries into your credit history can lower your credit score.  Your best bet is to hold off on any additional financing until your home purchase loan is completed.

Of course, it’s always important to shop around and compare rates when you’re looking for the best mortgage deal. And now that you know these extra pieces of information about how mortgages work, you should have an easier time differentiating between a good mortgage rate and a bad mortgage rate. A mortgage rate that looks good at first could end up being a bad mortgage rate in the end because of hidden fees and other cost factors.

To learn more about finding the best mortgage rates, give your trusted mortgage professional a call.

Filed Under: Mortagage Tips Tagged With: Fees, Mortgage Rates, Mortgage Tips

Scott Ellis Profile Photo

Contact Scott


Mortgage Loan Officer

Call (312) 218-4141

NMLS #133371
I am licensed in Arizona, California, Florida, Illinois, Indiana, Michigan, Minnesota, Tennessee, Wisconsin.

Homeside Logo
Homeside Financial NMLS #1124061

Connect with Scott

How can we help?

  • This field is for validation purposes and should be left unchanged.

Browse Articles by Category

Recent Articles

  • Why Your Kitchen Features Matter
  • What’s Ahead For Mortgage Rates This Week – February 6, 2023
  • 3 Tips To Consider When Buying A Home With An FHA Mortgage
  • S&P Case-Shiller Home Price Indices: Home Prices Fall In November
Equal Housing
Scott Ellis NMLS: 133371
Licensed in AZ #0950513; CA #CA-DBO133371; FL #LO38561; IL #031.0001848; IN #29673; MI #133371; MN #MN-MLO-133371; TN; WI #133371

Licensing

An Illinois Residential Mortgage Licensee, Is Regulated by the State of Illinois Department of Financial and Professional Regulation, Division of Banking located at 100 West Randolph Street 9th Floor, Chicago IL 60601, Mortgage Banking Examinations Phone 312-793-3000

Our Location


1323 Butterfield Rd.
Downers Grove, IL 60515

Copyright © 2023 · Powered by MySMARTblog