How to Ensure You Get the Best Mortgage Rate

Ensure You Get the Best Mortgage RateNaturally, home buyers are always especially eager to get the lowest mortgage rate possible. Here are three insights you can use as you work to secure a mortgage loan in Lexington and Central Kentucky.

Be an ideal borrower

In order to take advantage of today’s low interest rates, it’s important to demonstrate that you have the ability to repay your mortgage. When looking over your loan application, your lender will closely review your credit score and history, income history, savings and other financial factors.

Typically, the ideal borrower needs proof of stable income, preferably a tenure of two or more years at the same employer, a high FICO score and a verifiable down payment — plus cash reserves.

If you don’t fit the above description (and many borrowers don’t), it’s still possible to secure a loan that fits you and your financial goals. There are options for first-time buyers or those who don’t meet the ideal borrower standards.  Regardless, you’ll want to contact one of the top loan consultants at Rector Hayden Mortgage ( for more information!

Be cautious with your down payment and mortgage loan total

Mortgage loans can be approved with as little as 3 percent down, but borrowers who put down more than the requirement may secure a lower interest rate. Similarly, if a borrower is approved for a $300,000 loan, but only takes out a loan for $250,000, they may receive a lower interest rate.

Why is this? When a buyer voluntarily takes out less than what they qualify for — either because they increase their down payment or select a less expensive home — it shows they are very serious about their financial responsibility. When your lender sees that you are doing everything you can to minimize your borrowing risk, they may offer a lower rate.

Wait to shop for loans until you’re ready

If you plan to shop for loans to get the best rate, wait until you’re ready to buy. When you apply for a mortgage, each lender will inquire about your credit. If these inquiries continue over a long period of time, your credit score could temporarily be lowered, impacting your interest rate once you do finalize a loan application. Experts recommend confining your mortgage shopping to less than 14 days to protect against this.

Getting started

Securing a home mortgage loan doesn’t have to be a long, complicated process. Contact Rector Hayden Mortgage ( today for the best rates available – and a free consultation to determine your loan limit, how much you want to put down and options regarding different loan types.


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