Tips for Securing the Best Mortgage Rates

Securing the best mortgage rate can significantly impact your home-buying journey, potentially saving you thousands over the life of your loan. At BankSouth Mortgage, we believe that being informed and prepared is the key to unlocking the best rates. Here are some practical tips to help you understand what influences mortgage rates and how you can position yourself to get the most favorable terms.

Improve Your Credit Score

Your credit score is one of the most critical factors lenders consider when determining your mortgage rate. A higher credit score typically leads to a lower interest rate, which can save you a substantial amount over time. To improve your credit score:

• Pay all your bills on time. Consistent, on-time payments positively impact your credit score.
• Reduce outstanding debt. Lowering your debt-to-income ratio improves your financial stability and increases your chances of mortgage approval.
• Avoid opening new credit accounts. Each new account temporarily lowers your credit score.

Save for a Larger Down Payment

A larger down payment reduces the lender’s risk, often resulting in a lower interest rate. Aim to save at least 20% of the home’s purchase price. Not only does this help in securing a better rate, but it can also eliminate the need for private mortgage insurance (PMI), which adds to your monthly payment.

Explore Your Rate Options

Mortgage rates can vary depending on the specific products and programs available. Factors like the loan type, term, and eligibility for certain mortgage programs can all influence the rate you receive. At BankSouth Mortgage, our experienced loan officers take the time to understand your unique financial situation and goals. We’ll work with you to explore different mortgage products, ensuring you’re matched with the option that best meets your needs. By partnering with us, you’ll benefit from our expertise and personalized approach, helping you secure the most favorable rate available.

Consider the Loan Term

The duration of your mortgage can influence the interest rate you receive. Generally, shorter repayment periods tend to come with lower rates, but they also lead to higher monthly payments. It’s important to evaluate your financial situation and future goals when choosing the right repayment plan, ensuring you strike the right balance between manageable monthly payments and overall loan costs.

Lock in Your Rate

Mortgage rates can fluctuate daily, so once you find a rate you’re comfortable with, it’s wise to lock it in to protect yourself from potential increases before closing. At BankSouth Mortgage, we offer an exclusive one-time complimentary rate float-down option. This means if rates decrease after you’ve locked in, you can take advantage of the lower rate — giving you added peace of mind during the home-buying process. Our goal is to ensure you get the best possible rate with the flexibility you need.

Work with an Experienced Lender

Having a trusted lender by your side can make all the difference. At BankSouth Mortgage, we pride ourselves on being ready, responsive, and respectful, ensuring you receive personalized guidance throughout your home-buying journey. Our expert loan officers will guide you through every step of securing the best mortgage rate tailored to your financial needs, ensuring a smooth and successful home-buying process.

Start Your Journey Today

Securing the best mortgage rate involves preparation, research, and timing. By improving your credit score, saving for a larger down payment, considering your loan term, locking in your rate, and working with an experienced lender, you’ll be well on your way to finding the mortgage that fits your life. With ReadyLoan® at your fingertips, BankSouth Mortgage makes the process even smoother — letting you apply, track, and manage your loan with ease from your browser or the ReadyLoan® mobile app. Are you ready to take the next step and start your journey to homeownership?