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The total interest you pay over the life of the loan is a big figure, and a low rate can save you thousands of dollars so before you reach out to any lenders make a list of questions to ask. 

Be sure to talk to at least three or four lenders before making your decision. If you are concerned you may not qualify due to bad credit, more the reason to speak with a lender. They have excellent tips and sometimes services to help you improve your credit score.    

A lender or broker will have to pull your credit information and process a loan application to provide an accurate rate, which you can then lock in if you’re satisfied with the product. 

Once you have several quotes in hand, compare costs and decide which one makes the most financial sense for you. Use your research as leverage to negotiate for the best mortgage rates possible. Keep in mind that the rate quote is an estimate. 

Check with your mortgage lender or broker if buying discount points to lower your rate makes sense. If you buy points, you’re paying some interest upfront in exchange for a lower rate on your mortgage. This might be a good move if you plan on living in the home for a long time.   

Principal and interest payments on a mortgage aren’t the only costs of buying a home. You should ask your lender about all fees including closing costs, points, loan origination fees, and other transaction fees.  

These loans often apply to buyers with lower credit scores, as they offer a down payment as low as 3.5% and lower interest rates. However, FHA mortgages do also require mortgage insurance premiums, which can result in higher overall costs 

All veterans and active military members qualify for VA loans. These offer up to 100% financing, simplified loan approvals, and lower interest rates. They can be much lower than conventional loans. Those who've served our country in the military can now buy with little or no money down by using a competitive rate Veteran's Administration Loan which is government guaranteed.   

These loans are available to buyers in rural or low-density areas and offer up to 100% financing and below-market interest rates. Their ideal buyers are of average means, have lower credit scores, and are buying modest homes. Additionally, because of the government's loose definition of the term "rural," some of the buyers in the smaller communities surrounding Alexandria will qualify for this loan.     

A reverse mortgage is a loan that uses the home’s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. Any remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.