How Do I Get the Best Mortgage Rates in Las Vegas?

If you are buying a new home or planning to renovate an existing one, you’ll likely be looking for the best Las Vegas mortgage rates possible. Competitive loans are not always easy to get. They are based on a number of factors, including your property’s location, the size of the loan, your credit score and financial history, and more. Additionally, the lender that you choose can also make a difference in the end price that you pay for a mortgage. For assistance finding the best rates for loans Las Vegas, it helps to work with an experienced loan officer who can tell you how to go about finding competitive rates. (Read more on how to avoid these mistakes made by first time homebuyers.)

Before you can look for a loan with a good rate, it helps to know the types of loan structures that you can choose from and decide which one works best with your personal financial situation. The two most common are:

• Fixed-rate
• Adjustable-rate

Fixed-rate mortgages Las Vegas have a steady and predictable interest rate that is gradually paid off over the course of the loan’s lifetime. Each month you make payments on the principal and interest. Although you’ll continue to make these payments monthly until the loan is paid off, the amount that you owe with each payment remains the same. That makes it easier to predict your monthly payments.

With adjustable-rate loans, on the other hand, the interest rate can change. You might initially start out with a lower interest rate compared to a fixed-rate mortgage, but the interest rate can easily rise later on after the introductory period ends.

Your credit score is a key factor that lenders consider when determining what Las Vegas mortgage rates to offer. Generally, you’ll need to have a credit score of at least 620 in order to meet the qualifications for a mortgage. However, you may be able to secure government-backed home loans Las Vegas with a lower credit score. If you want to get the best possible mortgage rates, experts recommend having a credit score of no less than 760. However, most people find that they have some work to do if they want to meet that number. If you are among them, there are several things that you can do to improve your credit score. To start, you can request a credit report from the three major credit bureaus, which are TransUnion, Experian, and Equifax. You can request a report for free once per year from each of the lenders. The detailed report will provide some insight as to what you might need to do to improve your credit score, including:

• On-time credit card payments
• Low credit card balances
• Mixture of loan and credit card accounts
• Minimal credit inquiries

Conversely, there are some actions you can take that hurt your credit ratings. That includes missing credit card payments or not paying bills in full and on time, having high balances on your credit cards, judgments, and making numerous new credit inquiries.

Most lenders use the FICO credit score system to determine your credit score. Credit scores in the FICO system consist of five main factors, including your credit usage, payment history, credit mix, new credit inquiries, and the age of your credit accounts. Of all the factors evaluated, your payment history is considered to be the most important.

Another good way to improve your chances of getting a favorable mortgage rate is by increasing the size of your down payment. Generally, a 20 percent down payment is considered to be the standard by lenders when determining your risk as a borrower. Some government-backed mortgages may be available for a lower down payment, which can be as low as 10 percent or even in the single digits. However, signing up for a loan with a minimal down payment can make you appear to be a risk in a lender’s eyes. Therefore, you’ll want to try to get as close to the 20 percent mark as possible. Keep in mind that when you buy your home, you will also need to consider the fact that you’ll still need to pay for closing costs. Closing costs can range from two to five percent of the loan.

A steady income is also an important consideration for a lender. A good tip to remember is that lenders like to see a steady income with the same employer for at least two years. If you are considering changing jobs or quitting your current job, experts advise not doing so until after you have secured a mortgage. Additionally, the more you can show that you earn each year in income, the better. If possible, do what you can to increase your income before applying for a mortgage. Even picking up a side job or landing a part-time gig can do wonders for your changes of getting a favorable loan rate.

Mortgages come in two general categories, which are 30-year and 15-year terms. Although 30-year mortgages are the most common, a 15-year mortgage can give you better rates and help you pay off the loan sooner. A 15-year mortgage is available in several forms, including fixed-rate and adjustable-rate. Although it may require slightly higher monthly payments than a 30-year loan, you may very well find that you save money on interest payments due to the shorter duration of the loan.

Finally, there are many lenders out there with different rates and fee structures. One of the best ways to get a good rate on your mortgages Las Vegas is to shop around for different lenders. Research shows that prospective homeowners who compare the prices from at least five lenders can save as much as $400 or more in interest alone during the first year of the loan. It also helps to compare different lender categories, such as credit unions, online lenders, and banks.

Contact an expert loan officer today for more tips and strategies on securing a good rate for your home loan.