How to Get the Best Mortgage Rate

conceptual image with piggy bank, coin and house

Credit score

The MOST important thing is your credit score. If your credit score isn’t good, not only will you not get a good deal, but you probably won’t even get approved. So the key here is to have a high credit score. The higher the score the better your rate.


Once you start looking for a mortgage, don’t get set on the first one you find. It’s better to shop around. There are tons of choices out there, so do your research and figure out what’s best for you. Make sure you compare not only interest rates, but fees as well.

Down payment

If you don’t have the money for a 20% down payment, there are mortgages available with lower down payment requirements, but you’ll have to purchase mortgage insurance and you’ll probably get a slightly higher interest rate too. If you’re only planning on staying in the house for a few years, this may not be as important for you.

Need help calculating if you can afford to buy a home or what your monthly payments will be based on what you put down? Check out our free mortgage calculators at!

Debt-to-income ratio

Lenders will focus on how much your current gross income is going toward ongoing debt, so try and keep this ratio as low as possible. If you have any debt that is within reach of being paid off before you apply for a mortgage, definitely put some extra money on it and get it paid off.

Income stability

Lenders like to see a steady job history. If you’ve been in your job for at least a couple of years, you’re probably good to go. If you’re self-employed, the lender will probably want to see a few years’ worth of tax returns to make sure you have a solid stream of income coming in.

Stop into any First Financial branch and we can help you with your home buying journey. We provide great low rates and offer a variety of Mortgage options – to speak with First Financial’s lending department, call us at 732.312.1500 option 4.* 

*A First Financial membership is required to obtain a mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties. Subject to credit approval. Credit worthiness determines your APR. 

Article Source: John Pettit for


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