While mortgage rates are predicted to decline in 2023 as inflation eases, they’re still substantially higher than the record lows we experienced in 2020 and 2021. Getting the best mortgage rate can save you thousands of dollars over the life of your loan. If you’re hoping to score the best mortgage rate for your New York home purchase, then these are the tips you should follow to help you secure it.

Improve your credit score

Your credit score is one of the biggest factors that lenders consider when determining your mortgage rate. The higher your score, the better your rate will be. Make sure to check your credit report and address any errors or outstanding debts that may be impacting your score.

Shop around

Don’t just go with the first lender you find. Shop around and compare rates from multiple lenders to find the best deal. You can use online tools or work with a mortgage broker to help you compare rates and find the best lender for your situation.

Get pre-approved

Before you start looking for a home, get pre-approved for a mortgage. This will give you a better idea of how much home you can afford and can also make your offer more attractive to sellers.

Make a large down payment

Lenders view borrowers with larger down payments as less risky, so you may be able to secure a better rate if you’re able to make a significant down payment on your home.

Consider a shorter loan term

A 30-year mortgage is the most common loan term, but you may be able to secure a lower rate if you opt for a 15-year mortgage instead.

Choose a fixed-rate mortgage

With a fixed-rate mortgage, your interest rate remains the same for the life of the loan. This can provide stability and predictability, which can be especially helpful if interest rates are on the rise.

Don’t open new credit lines

Opening new credit lines can lower your credit score, so avoid applying for new credit cards or loans while you’re in the process of getting a mortgage.

Don’t change jobs

Lenders like to see stability in a borrower’s employment history, so avoid changing jobs right before or during the mortgage application process.

Be prepared to negotiate

Once you’ve found the best mortgage rate, don’t be afraid to negotiate with the lender. Ask if they’re willing to lower the rate or if there are any other ways they can help you save money on your loan.

Lock in your rate

Lastly, remember that mortgage rates can change daily and sometimes even hourly, so it’s important to lock in your rate as soon as you find one that you like.

Contact Keller New York today

If you’re in the market for a New York home, then contact the Keller New York Bronx office at 718-697-6800 or the Eastchester – Scarsdale office at 914-713-3270. Our team has expert knowledge of New York real estate and we’re available to answer all your questions and help you through every step of the process. Contact us today!