Purchasing a home is a major life decision that can feel like a daunting task. Still, many homeowners don’t realize that securing the best interest rate on your mortgage can make a huge difference in your overall financial health.
Working with a reputable Philadelphia mortgage broker can make all the difference in unlocking the best mortgages rates since they can compare rates from several different mortgage programs and present you with the best loan program for your needs, unlike a bank or mortgage lender who can only present you offers from their financial institution.
Here’s how you can work with Philadelphia mortgage brokers to get the best interest rates during your home buying process so you can make the right informed financial decisions about home purchase.
Do your research on local mortgage lenders
To secure the best interest rate, start by researching the different local mortgage lenders and mortgage brokers and understand their rates, fees, and terms. Researching the right Philadelphia mortgage broker can give you the information you need to select the top mortgage professional and best-suited mortgage advisor for your particular circumstances and goals.
From the very first meeting with our team, we’ll work to understand your real estate needs and give you an overview of the current local market. We’ve worked with hundreds of clients and can leverage our expertise to win you the deal and secure the property you want for your business.
Each lender will have different mortgage rates to offer. Here are some resources for comparing current mortgage rates:
Bank and credit union websites
Online mortgage comparison tools
We have a calculator on our website that gives you an idea of how much your monthly payment might be based on current interest rates and your individual mortgage terms.
Financial publications and websites
When comparing lenders, it’s crucial to consider more than just the interest rate. Take into account other factors like closing costs, mortgage loan terms, and great communication to find the right mortgage brokers for you.
Improve Your Credit Score
Your credit score plays a significant role in the mortgage process and will determine your overall interest rate for your mortgage loans. That’s why having the best credit score and taking the time to improve it can really pay off during the loan process.
Some ways you can improve your credit score include:
Pay off your current debts, especially high-interest credit card balances
Check your credit report for errors and make sure to dispute any inaccuracies
Maintain a low credit utilization ratio by keeping your credit card balances below 30% of your available credit
By improving your credit score, you can increase your chances of securing a lower interest rate on your mortgage.
Save Up for a Larger Down Payment
If you can make a larger down payment, it can pay off by reducing the loan to value ratio. This, in turn, minimizes the risk for the bank and can help a Philadelphia mortgage company secure a lower interest rate on your mortgage.
Talk with your mortgage broker about the benefits, like:
Lowering your monthly mortgage payment
The more money you put into a down payment, the less money you have to borrow. This helps you lower your overall home purchase financing amount and can save you on your monthly budget.
Avoiding private mortgage insurance
Conventional loans require private mortgage insurance if there is less than a 20% down payment on the home. You can avoid this added monthly charge by saving up for a 20% down payment.
Accessing the most favorable loan terms
You should start saving for your down payment as early as possible so you can benefit from all the great loan options and make your mortgage easier to afford.
Work with a Reputable Mortgage Broker in Philadelphia PA
Navigating the complex mortgage process can be challenging, but working with a reputable mortgage broker like Penn Street Mortgage can make the process much smoother.
A mortgage broker can:
Help you understand the different types of mortgage loans and their requirements
With so many different types of mortgage loan products available, it’s important to understand each of the loan programs available and how they impact your home purchase loan.
Mortgage advisors can make sure you review rates from all the available options and find the one that fits your budget best.
Negotiate with lenders on your behalf to secure the best rates and terms
One of the biggest benefits of work with Philadelphia mortgage brokers is that we can advocate and negotiate with many banks to get you the best competitive rate comparisons.
Simplify the application process and guide you through each step
The mortgage industry can be confusing. Let mortgage professionals walk you through each step so you feel prepared and informed about the process.
Consider refinancing your existing mortgage with mortgage brokers
Working with a mortgage lender isn’t just for a new home purchase! You can also work with Philadelphia mortgage brokers like Penn Street Mortgage to use your home’s equity to see what kind of refinance rate you’re eligible for.
Our team can help you review your loan options and outline how refinancing terms can help you unlock cash and benefit from your home equity through a cash out refinance.
Refinancing your current mortgage and going through a mortgage refinance could have several benefits like getting a lower interest rate, consolidating your debt and removing private mortgage insurance.
Mortgage brokers like our team at Penn Street Mortgage can help you analyze your current mortgage, compare refinancing options, and determine if a mortgage refinance is the right decision for your financial goals.
Work with the trusted mortgage brokers in Philadelphia PA at Penn Street Mortgage
When you work with our team, you’re more than just a transaction — you’re part of our Penn Street Mortgage family for life. With decades of experience helping customers in Philadelphia PA and beyond, we take great pride in assisting clients to make their dream home affordable.
Whether you’re a first time homebuyer or looking to get a second mortgage, our experienced team will make the entire process as seamless as possible — from the approval process to closing loans.
If you’re ready to get started, submit an application to get custom digital quotes for your mortgage needs.