If you are in the market for a mortgage or are refinancing your existing mortgage, qualifying for the lowest interest rate possible is probably high on your list of priorities. There are steps you can take to ensure that you are getting the most competitive interest rate for your new mortgage. Here are several mortgage tips to help save you money.

Stay on Top of Your Credit

Having a good credit score is important for getting a good mortgage. It will also qualify you for the best interest rates. Borrowers with high credit scores are less of a risk for mortgage lenders and qualify for the best loans. If you have a history of paying your bills on time the lenders figure you will continue this trend with their loans.

Improve Your Credit Score Before Applying

There are a number of steps you can take to improve your credit score. The most important thing to do is make all of your monthly payments on time. This applies to your credit cards, student loans, car payments, rent, and your existing mortgage. The next thing you can do is pay down the balances on your credit cards to improve your debt-to-income ratio. If you have credit cards you do not use, department stores charge cards for example, consider closing these accounts. Mortgage lenders view open accounts as the potential for debt; this could result in you qualifying for a higher mortgage interest rate.

Guarantee Your Interest Rate

Make sure that once you have found the perfect interest rate your lender locks it in with a guarantee. Mortgage interest rates fluctuate widely; if youre not careful your perfect interest rate could quickly become less than desirable. Make sure your mortgage lender gives you the guarantee in writing and gives you enough time to close on the mortgage before the guarantee expires. The guarantee should also include any points you are paying at closing and what you get in exchange for the points.

Do Your Homework and Shop Around

Comparing loan offers from a variety of lenders and brokers will help you find the most competitive rates. When you shop for a mortgage make sure you compare more than just the interest rate or the Annual Percentage Rate. You need to compare all aspects of the mortgage offers, including lender fees and closing costs. To learn more about your mortgage options, including common mistakes to avoid, register for a free mortgage guidebook: Five Things You Need to Know Before Refinancing Your Mortgage.