Louisiana Home Mortgage Loans – 3 Ways To Get The Best Rate

March 16th, 2022 by admin Leave a reply »

Louisiana is one of the few hot real estate markets in the country with home prices increasing about 49% in New Orleans and surrounding areas since hurricane Katrina. Houses in areas that did not flood with the recent hurricanes demand top dollar, especially if they are near city centers. While the economy is improving in Louisiana, the cost of owning a home has gone up, driven by the increase in insurance premiums for flood prone areas. That’s why it is more important than ever to get the best rate on your mortgage to keep your monthly payment as low as possible. These tips will help you qualify for a low rate home loan.

1. Clean Up Your Credit Record

Paying off debt and checking for errors on your credit report are two good
ways to improve your credit score. The less debt you have, the more lenders are willing to lend you. You also want to make sure that your score isn’t getting lowered for mistakes creditors made regarding your payment history.

2. Increase Your Cash Reserves

Stocks, mutual funds, and investments are seen as volatile reserves. Mortgage lenders prefer an applicant with stable cash reserves found in savings accounts or money markets. By reducing your risk with cash reserves, lenders will offer you a better rate on a home loan.

3. Research Lenders Online

For the best rates, it pays to look at lenders from across the country, not just local Louisiana bank offices. By searching online for your mortgage, you can request loan estimates to compare with other offers. In less than an hour, you can review multiple offers without hurting your credit score with multiple credit inquires. Be sure to tell lenders the address of your new home since you may qualify for special loan programs. For instance, one loan program called “Welcome Back Home Loan Program” offers loans at 5.875% for those buying homes in New Orleans. Most major lenders are a part of this home loan program.


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