Low Home Rates - Taking Advantage of Excellent Mortgage Opportunities

When low home rates abound, it is only natural to start thinking about buying a house. Even those couples and families who were sworn to a lifetime of renting start thinking about buying some property of their own when the interest rates fall below a certain level. They are bound to do so when the economy is uncertain, and that means you may be considering putting your rental career on hold and moving into a place of your own. Don't mess things up before you even begin your search, however. Here are some common mistakes people make before buying a house. Avoid them if you can.

Changing Jobs

When better employment opportunities present themselves, it can be difficult to pass them up. You may, in fact, not want to. But if you're set on taking advantage of low home rates in the near future, you need to stay with your current employer. Mortgage firms, just as any lending agencies, look favorably on long-term employment with a single company. It shows stability, and stability is one of the prime traits lenders look at when determining who to give loans to. If you've made an upward move in your employment status, you're still likely to qualify for a loan, but you may not get the interest rates you hoped for.

Financing Other Purchases

Applying for loans causes your credit to take a small hit. Taking out a big loan does as well. Even if you easily have the means of affording that new car, this is not the best time to increase your debt/income ratio. Low home rates aren't particularly tough to find, but they may become rarer when a lending agency sees that you have just entered into another loan. Try to put off those purchases until after you've bought your house. Being a homeowner actually improves your credit rating, and should therefore have the additional benefit of getting you a better car loan.

Missing Payments

This is good advice at all time, not just when looking for low home rates, but you certainly want to make sure you have a clean credit history when negotiating for a mortgage. Lenders see missed and delayed payments as major red flags. They aren't as damning as defaulting on a loan or having something sent to collections, but they will still stand out to anyone looking over your credit report. While it may not prevent you from signing onto a house loan, it will have a deleterious effect on what kind of interest you can get out of the loan.