Guidelines for evaluating lenders and loan estimates

Strategies to get a lower rate
Getting a low refinancing rate is both an art and a science.

Certain strategies work, and some don’t. Every single situation is different, and the stakes are high.

Certainly, rates are hovering close to 3-year lows, but that doesn’t mean loan providers will just give you their best possible deal and call it a day.

In many cases, you have to poke and device for your best rate.

So, how do you do that?

With the right knowledge, you can approach your lender with confidence, knowing how to compare one offer with another, and even use one offer against the other.

Ready to get the best mortgage refinance rates? Here’s how.
Make certain your credit and debt are in check
To have the best rate from any lender, you should have a good credit score and a low debt-to-income ratio. In 2018, financing scores and DTIs were the two main reasons why loan providers denied refinance applications.

Loan providers offer the best prices to borrowers who have a track record of paying their bills on time and managing their debt.

So, you’ll need to make sure your financial house is in order by checking your credit report’s accuracy and calculating your DTI before you start shopping for the lowest refinance rates.

Keep in mind that a less than ideal credit score or excellent DTI doesn’t necessarily disqualify you from a mortgage refinance — but it means you won’t be able to get the best rates and maximize your savings.
Contrast multiple loan estimates
You can get as for instance many mortgage refinance estimates as you need. But regrettably, many borrowers only get 1 quote or apply with one lender.

By asking for a quote from just 1 lender, you could be leaving thousands — if not tens of thousands of dollars — in savings behind.

Thankfully, the internet makes it easy towards obtain quotes from multiple lenders.

But here’s in the kicker: you can’t simply get multiple quotes. You must show the quotes to the other lenders.

Possibilities are that high quotes will come down. Lenders will lower their rate and/or fees to keep your company. Savvy shoppers come out on top when they use multiple quotes to their benefit.