It is essential that you plan ahead before purchasing a home in Louisiana so that you can get the best loan rates possible.
With home prices increasing at 49% in New Orleans and surrounding areas since hurricane Katrina, Louisiana has been one of the few hot real estate markets in the country. The houses that were not affected by any flood from the recent hurricanes claim top dollar especially if their location is near the city centers. The economy may be improving in Louisiana but the cost of buying a house has gone up dramatically and this is due to the increase in insurance premiums in areas that are likely to be affected by flood. This is the reason why you should make sure that you get the best mortgage loan rates so that you can keep your monthly mortgage as low as possible.
Improve Your Credit Score
In order for you to guarantee that you get the best mortgage loan rate, you must first keep your credit score clean. There are two things you can do to improve your credit score. One is to pay off your debts and the second is to review your credit report for errors. More lenders will be willing to loan you the money you need when they see that you have a clean credit record. There may be instances that creditors make mistakes regarding your payment history and you can dispute that. Make sure that you go over the report properly because you do not want to miss any wrong reports. Once you are able to locate any errors, you can write a letter of dispute to the major credit bureaus or the reporting agency. When you send them your letter of dispute, they will make the necessary adjustments on your credit report after further examination and your credit score will surely increase.
Increase Your Cash Reserves
The next thing that you can do is to increase your cash reserves. Financial institutions or mortgage lenders give preference to applicants who have stable cash reserve funds found in their savings accounts or money markets. The stock funds, mutual funds and investments that you made can be seen by lenders as unstable reserves and by reducing your risk on cash reserves, the lenders will most likely offer you a better rate for your home loan.
Compare Mortgage Rates
You must also conduct your research for lenders and you can do that through the internet. It may pay off to take a look at lenders across the country for you to find the best rate. Do not limit yourself to local Louisiana financial institutions and bank offices. When you search online for your mortgage, you can easily request for loan estimates and make comparisons with the other offers that you get. You can review several offers in less than an hour on the internet and what’s good about this is that it will not affect your credit score just because you conducted multiple inquiries. Make sure that you give the lenders the address of the home that you are considering to get because you could qualify for special loan programs.