One way to get a good rate is to establish a bank account with a local bank. One local bank here in the Southeast area of Missouri is First State Community Bank, which is based in Farmington, MO. If you work with a local bank that knows you, when it comes down to buying a house or refinancing, you will get extra help from that bank. Small banks want to keep their customers and will give extra attention and spend more time walking you through getting the best rate and/or financial product. They will keep in mind your banking history and be more willing to give in house loans for smaller mortgages and work with you in providing you the best deal. In Missouri, one time to get a really good rate through a local bank is during the winter. This is a time when business tends to be down and people aren’t buying very many houses. Avoid the commonly moving time right before school time because the bank will be overwhelmed by mortgage applications. A local bank will have less time for you and personal attention is the most important aspect of getting a good loan from a local bank.
If you follow the advice given by the Missouri Division of Finance, a website of the Missouri State Government, then you need to shop for the best loan, and not the best bank. They also suggest avoiding mortgage brokers and go right to the source in terms of lenders. However, this website admits that the credibility of the bank does matter, no matter what terms they offer, especially in light of financial problems that occurred with risky loans in the last few years. An important question to ask when trying to get the best mortgage is what the best loan origination fees and closing costs will be. You need to figure this information against the proposed rate to make the best decision.
Another way you can get the best rate is through Bankrate.com. This site is touted by many business magazines as being objective and not just directing you to certain mortgage companies. It allows you to search by area, letting you compare the rates in your area-this can in fact be helpful information to bring to your local bank or to apply somewhere else. But remember when you are using this resource that there are many factors that are involved in getting a certain rate, including your credit history, your down payment, whether you are a first time home buyer, and what type of loan you qualify for. You also have to keep in mind that the overall mortgage rate might not mean as much practically as the monthly payment. Luckily, this site is a great resource for helping you calculate this and help you determine what the best loan is. Getting the best rate means having the best credit possible, so you have to be careful about getting your credit pulled when applying or looking into mortgages. Using this site helps you find background information without committing to an application and having your credit report blemished in the process.