Tips for evaluating lenders and loan estimates

Strategies to get a lower rate
Acquiring a low refinance rate is both an art and a science.

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

Sure, rates are hovering near 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.

And, how do you do that?

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

Prepared 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 loan provider, you should have a good credit score and a low debt-to-income ratio. In 2018, credit scores and DTIs were the two primary reasons why loan providers denied refinance applications.

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

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

Keep in mind that the most less than ideal credit score or above-average 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.
Compare multiple loan quotes
You can get as many mortgage refinance quotes as you want. But regrettably, many borrowers only get 1 quote or apply with one lender.

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

Thankfully, the web makes it easy to 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 another lenders.

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