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By: Danette Mckay
If you are reading this article then you either already have a mortgage or you are planning to get one soon. A mortgage is a big financial decision many times the biggest in your like. It is not surprising thus that getting a good mortgage is important. Here are some tips how to do just that.

Most people focus their efforts to get a good mortgage at the time they need a mortgage by shopping around for the best terms and interest rate. While this is something that needs to be done getting a good mortgage is actually something that you should start working on long time before applying for one, preferably a few years or more. After all one of the most important drivers for getting a good mortgage is your credit score and credit history which takes years to build.

One of the best advice that you can get is to simply work on improving your credit history. It is never too late to do it. Even if you neglected your credit history and now you are in need of a mortgage you can still improve your future finance by starting to work on it. Take the best mortgage that you can get with your current credit history, work to improve it and then in a few years refinance to a lower interest rate based on your improved credit history.

Track your credit history regularly. Promptly call the credit history bureaus if you identify any mistakes. Make sure that you pay all your credit cards and other loans on time. Avoid applying for credit too often and when not necessary. The number of credit applications is a factor in determining your credit score for example applying to many credit cards or discount store cards can on the long run lower your credit score and result in you ending up paying much more than all those discounts through your mortgage dues.

When applying for a mortgage you should take into consideration your future financial stability. Try to sit down and estimate what is your forecast for your future ability to pay the mortgage dues, and what is your forecast for your future financial status improving. For example if you are on a career path and you are confident that in 5 years you will be promoted to a better job that pays more you might consider taking a five year ARM mortgage that provides lower interest in the short term while your income is limited but that its interest rate goes up according to market conditions within five years at a time when you assume you will be in a position to afford larger payments. Be aware that such a tactic is risky as future plans might fall apart. Always make sure that you leave plenty of slack for unpredictable developments.

When applying for refinancing first make sure to check your credit status. Check your credit history report for irregularities. If you identify any problems delay your refinance application and first fix your credit history.

For any kind of mortgage refinancing, one needs to check on the stability of the credit status. In order to even qualify for a lower mortgage rate one has to improve the credit. In case your financial situation has improved since the time when you bought your home, you can upgrade for a better rate by just applying for the same. All of us have faced credit problems at some time or the other. But for acquiring the best mortgage rates, building up a good credit account is of prime importance.

Most mortgage loans come with a term length, in other words the given span of time for repayment of the loan. Though most mortgage loans come with a thirty-year term length; there is however forty and fifty year terms available too. Most short-term mortgages are usually considered low risk and come with lower interest rates.

While searching for lower interest rates, be sure to compare multiple mortgage offers which detail out lender fees as well as closing costs. Try to compare and contrast the best mortgage rates of various lenders in such a way that you get the best refinance loan package deal. Before you choose a lender, make sure that you have contacted credit unions, mortgage companies, banks, etc. Ask for best mortgage rate from various financial institutions before you accept any offers. You will save your time and money by contacting mortgage brokers as well and you can also submit your information to different lenders for their opinion.
This article and more are from Danette Mckay who is an expert in his field. credit history provides more in depth information.
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