How your employment history can affect your mortgage rate

Get the lowest mortgage rate
Posted at 1:36 PM, Oct 26, 2016

Buying property is one of the largest purchases and biggest financial commitment that most Americans will make. With real estate values rising beyond inflation rates, this has become truer since the late 1990s. For borrowers, it's important to take control of homeownership, including the costs involved.

One of the most important factors lenders look at is a borrower's financial history. Perks are available for those who have worked in the same place for many years, or who have been growing their annual income at a consistent rate.

In such cases, financial institutions may offer lower interest rates, saving you a considerable sum of money. Changing jobs or quitting during the closing process could derail a home purchase. In such cases, many lenders will not be confident about income reliability and therefore be less likely to provide the best rates.

One of the most important things homeowners can do is to talk to their bank and ask for a lower rate. The answer may be no, but lenders might offer a variety of cost-saving options. Banks want to do business, particularly with those who have excellent credit scores. So, if you want to save money on your home loan, acquiring the lowest possible mortgage rate is ideal.

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