4 Tips to Get the Best Rates Out of Your Home Loans

When looking for a home loan, one of the most critical factors to look at is the loan’s interest rates. This is because one of the most significant factors that will affect the total cost of getting a loan is the rates themselves, and the higher the rate, the more money you’ll end up spending to buy the house. As such, it is obvious to you that you would want to opt for loans with the lowest interest rates possible. It’ll be how you will save a lot of money in the long run.

That being said, how does one exactly obtain a loan with good rates? You need to do something to find reasonable rates among the mediocre and even bad rates, right? That’s true, and today, we’re going to share with you tips on how to find the best interest rates for your home loans:

1. Look Around

You’ll never find the best interest rates if you don’t spend the time to look at the options available to you! As such, always sit down and shop around for different quotes and rates. Different lenders will often have their mortgage rates set up, and by comparing different rates, you can identify which one you qualify for is the best rate you can find.

2. Check Your Credit Score

One of the most significant factors that will affect the interest rates you are receiving is your credit score. This score tells the lender just how good you are at paying back the money you owe, and the higher the score, the lower the interest rates. This is because a high score essentially means less risk on the lender’s side, allowing them to charge lower rates confidently. For that reason, before you look at rates, check your credit score. If it is good, that’s great! If it is bad, then it is time to improve it.

3. Improve Your Credit Score

To improve your credit score, there are a few things you can do. For example, if you have any outstanding debts at the moment, you can work to pay them off quickly. If you have a credit card, lowering your spending there can also improve your credit score. On that note, if you need the loan right now but do not have the time to improve your credit score, you may be able to find a co-signer with a better credit score to help you secure a loan with lower interest rates.

4. Make Larger Down Payments

Typically, the larger the down payment you make, the lower the overall interest rates you pay. This is because, to lenders, the higher the down payment you make, the less risk the lender will face. Just be sure to talk to the lender in advance to see if a higher down payment will help you secure a lower interest rate!


By following the above tips, you give yourself a higher chance of obtaining better rates on your home loans. That said, if you feel like all of the above efforts are too much work to be worth the results, think again. Though a few percentages off of your interest rates might not mean much, it will be much more valuable in the long run. Whether your repayment terms are 10, 15, or even 30 years, each percentage of interest rates you can shave off will help you save hundreds if not thousands of dollars! As such, put in the effort to try and obtain the lowest interest rate possible. This way, you’ll have plenty of spare cash lying around to dedicate to other things.

Sam Lends Money offers loan officers with expertise in home financing products to help individuals finally achieve homeownership. If you are looking to apply for a mortgage in Fresno, CA, apply with us today!