Even though the economy is struggling right now, it is actually one of the best times to go out and buy a house. Interest rates are lower than they have been in years because struggling financial institutions want to encourage people to start taking out loans and begin paying interest on those loans. But it can be confusing to new home buyers how to find a good mortgage rate, and then securing a low mortgage rate. Where should you begin your search for a low interest rate, and what can you do to make sure you get the lowest mortgage rate possible?

Whether you go to a Massachusetts bank, a Portland credit union, or you keep your money tucked under your mattress, you have many mortgage options open to you. Finding the best mortgage rate will depend on your dedication and detective work. The following sources are great ways to begin finding the best rate possible.

If you happen to have a trusted financial advisor such as a mortgage broker or your local banker, they should be your first and most accurate source of information on what interest rates are and they can give you a good start in knowing what to expect.

If you happen to be a member of a credit union, ask them what mortgage rates you can qualify for. Credit unions are known for offering lower lending rates because they are non-profit organizations. Therefore, because credit unions are lending their own money, if you are a long time member in good standing, they may get you a better rate than Fannie Mae or Freddie Mac programs offered from other lenders.

Another good source for information on current mortgage rates is your local newspaper. Community newspapers often have a mortgage comparison section on the financial page which will compare local lending agencies’ mortgage rates based on a certain loan size to help you find the best deal.

You can also visit the Freddie Mac website for additional information. The Freddie Mac website offers a snapshot of local interest rates depending on what region you live in. Simply click on the week you are interested for additional, regional mortgage rate information.

Using each of these different sources will really help you to know what interest rates are out there and where you can find the lowest interest rate for the area you are interested in.

It is important to know that when you go out searching for a low interest rate, the rate that lenders will show first, which is normally very low and appealing, applies only to borrowers who are very well qualified and meet very specific qualifications. Most people do not fit these qualifications. Therefore, you should not just settle on the lender with the lowest rate advertised because they may not offer the lowest rate for you personally. The following tips are best ways to ensure that you get the lowest mortgage rate.

First of all, lenders base your personal interest rate on how good or bad your credit score is. That doesn’t meant that you have to have a score of 750 to get a good rate, but you should have at least a 600 to qualify for better rates. On your credit report, you should have at least two things that qualify as “revolving credit” and maintain a low balance on each. These are often credit cards and lines of credit.

Next, lenders will likely give you a lower mortgage rate if you have some assets to your name. This doesn’t mean you have to own an expensive car or motorcycle, but it is helpful to have a few thousand dollars saved up in the bank. Moreover, if you have enough saved up to make a down payment of 10% on your desired house, you can often get a lower rate because they feel like you can be trusted more.

Another thing that will help you get a lower mortgage rate is to enter into a shorter term loan. You become a better investment to the bank if you show that you are willing to pay off the loan in a shorter time. This will cause the monthly payments to be higher, but if you can afford it, you can save upwards of hundreds of thousands of dollars by the end of the loan.

Finally, you are much more appealing to lenders if you show consistency in your life. This includes making payments on time and being smart with your money. But this also includes having a steady job that you have been employed at for a long time. Knowing that you have a dependable source of income from a constant source makes you a better investment for lenders and they will be more willing to give you a lower mortgage rate.

There are certainly other things that you can do to make sure you get the best mortgage rate possible, but following the aforementioned tips will give you a step up on others looking to get a mortgage loan. You will increase your chances of getting the house you want and get it at a cheaper price than if you just go into a mortgage unprepared.