Mortgages Are at Historic Lows, So How Can You Get That Low Rate?
Aug. 12, 2010 — -- Mortgage rates are at an historic low, but they aren't resulting in more home sales, according to the Mortgage Bankers Association.
The group says many people -- be they homeowners looking to refinance or new home buyers -- are finding it virtually impossible to get the low-interest loans.
Fox Business Network's Gerri Willis told "Good Morning America" that one of the most important things prospective homeowners can do if they're shopping for a loan is to check that their credit is sound.
Here are some more tips for how you can improve your credit score:
Some people may think that just paying bills on time will prevent a bad credit score. But these days that is not enough. Here's a list of dos and don'ts -- what you should and should not do if you want to maintain or improve your current credit score:
Making the steps toward a better credit score can lead to more financial freedom. Yet while you're on the journey, beware of these pitfalls:
During her appearance on "GMA," Willis also encouraged homeowners who were looking to refinance their mortgages to get their own home appraisal.
How to Get Your Home Appraised Independently
Appraisals determine the value of a home based on other comparable houses in the neighborhood that have been sold recently or are up for sale.
Websites like zillow.com and domania.com provide free opinions of a home's value, and independent appraisers are available, as well, to give you an estimate. With fees ranging from $250 to $500, appraisers can be costly, but they are also more accurate. Make sure your appraiser meets the following qualifications:
If a value is given that you believe is less than what your home's value should be, you can submit an appeal. Sometimes appraisers neglect to include similar, recently sold properties or omitted renovations and other characteristics of a home that could increase its value. Also if you've recently financed your home or received a home equity loan, a professional appraisal may already be available.