Everybody can finally realize their own version of the grand American dream, that of sitting on the porch of their own “white picket fence house.” Gone are the days when one’s dream of owning a house was shelved because the individual didn’t receive a good paycheck at the end of the month; these days, even your credit score does not pose a hurdle when it comes to buying a cozy house for you and your family. So, to sum it up, almost everyone can own a house these days, but the onus here falls on whether you can procure the best home loan rates.

Home loans have made it possible for people to buy their dream houses, but applying for a home loan and getting it approved is a task in itself. Right from your finances to your ability to make monthly payments is taken into account. Though you need home loans to finance your new house, you shouldn’t forget about the down payment. Getting the home loan approved might not appear as a mammoth task when compared to making timely monthly payments, and you shouldn’t forget that you will be paying interests as well for the money you have borrowed.

Various banks and other financial institutions offer attractive home loan rates, but you need to be eligible for availing the best home loan rates that these entities have to offer, and here’s how you can do that.

• Boost your credit score
  Mostly, people don’t decide to buy a house all of a sudden; there is a lot of planning and deliberation. The most crucial step you need to take towards securing the best home loan rates is improving your credit score (if it’s not up to the mark). According to the banks and other financial institutions, the higher the credit score, the more reliable you are in terms of making timely payments, and finally paying off the loan. A decent credit score ensures that you’ll have to pay lesser interest for borrowing money. So, make sure you pay your bills on time and improve your credit score.
• Think multiple lenders
  Don’t use the “one-stop shop” technique here; look for multiple lenders since this offers you the chance to look for competitive interest rates, and you can choose the best home loan rate from among these. It is imperative that you shop around, get multiple quotes, and this would increase your chances of securing the best home loan rates manifold.
• Preapproval is a must
  The easiest way to losing out on your dream home is looking for properties before securing a preapproval for the home loan. A preapproval is indispensable for the entire house-hunting process since it speeds up the closing process as it narrows down your search. The lender will inform you about the maximum amount you are pre-approved for, and this helps you avoid wasting time on houses that exceed your loan range. As a buyer with a preapproval, you’ll be a more potent buyer in the seller’s opinion.
• Prove that you are employed
  To secure the best home loan rates, you need to win over the bank’s confidence that you are completely equipped to pay off the loan as you are employed. It is imperative that you show at least two years of steady employment and earnings, and it holds more weight if it’s from the same employer. The banks would gauge your ability to make monthly payments, which include the interests as well, on the basis of how long you have been employed.
• Say no to more credit cards or loans
  Since you are looking for the best home loan rates, it is imperative that you don’t apply for more credit cards or loans in the months leading up to your home loan application. If you do so, there are high chances that you will lose out on a few points from your score, and this would hinder your chances of qualifying for the best home loan rates.
• Beware of scams
  Last, but not the least, beware of scams where the “officials” promise attractive home loan rates and look almost legit enough to fool any experienced person. So, proceed with caution when any “representative” or “real estate agent” tries to establish contact and persuade you into divulging highly sensitive information.

So, ensure that you follow these steps so that you can be eligible for the best home loan rates.