For many first-time home buyers, the 30 year fixed mortgage offers predictability, lower monthly payments and a chance to move into a home with limited money down for many buyers and with many loan options.
First-time home buyers will find that preparing to buy a home can really help in getting the lowest possible 30 year fixed rate mortgage rates. This is true for a conventional type of loan through a lender or mortgage company as well as loans that are backed by the VA or FHA. Even for a jumbo loan, planning ahead and spending a few months working on your financial situation can save tens of thousands of dollars over the 30 years of payments.
Priority on Boosting Credit Scores
Most people are aware of the importance of increasing their credit score. Most conventional loans will require a 620 score or greater, with the best 30 year fixed rate mortgage rates going to those home buyers with a score typically at about 760.
However, FHA loans and VA loans are possible with significantly lower credit scores. Just remember that moving the score up even 20-40 points in a few months is typically not difficult by challenging errors, paying off credit card balances and avoiding any large purchases on credit.
Review Mortgage Requirements
Many people don’t realize that a “thin credit file” of a lack of established record of payment of debts can impact your ability to get a loan. Most conventional loans will need to have 3 different types of credit or tradelines on your credit report. These can include loans, including school and car loans, as well as credit cards. They will also have to be active and open for at least a year to be considered.
Avoid any sudden closing of bank accounts or sudden changes in spending patterns to get the best in 30 year fixed rate mortgage rates. It is also critical not to change jobs at this time if it is at all possible to stay with a long-term employer at least until the home purchase is completed.
At Guaranteed Rate, our lending experts will talk you through our online application and provide support and advice for our mortgage products to get the best 30 year fixed mortgage rates.