When shopping around for mortgage interest rates, there are several things you can do to improve your chances of getting a very competitive rate from a reliable lender. Things like improving your credit, shopping around, and getting rate guarantees will all help you to find the best rates available.

First things first, take stock of your credit and review your overall financial situation. By paying all of your bills on time and keeping low balances on your credit cards, you can improve your credit score. A good credit score is essential to getting a low interest rate, since mortgage lenders use your score to determine what type of risk is inherent with offering you a loan.

One way to improve your standing in the eyes of a mortgage lender is to close any unneeded credit accounts. This includes things like department store credit cards, regular credit card accounts, and any other accounts that you don’t need. If you have a lot of credit accounts, lenders will see that you are capable of racking up a large amount of debt. This increases your risk level, and subsequently, the interest rates that they will offer you.

When shopping around for mortgage interest rates, get the lender to guarantee you the rate in writing. Some lenders may ask you for payment in order to get this guarantee, but if the rate is good enough, it might be worth it. Just make absolutely sure that the rate is locked in for a period of time that will allow you to close the loan first.

If you have cash on hand and want a lower interest rate, you should consider paying points. Points are basically pre-paid interest on your loan that will get you a lower monthly payment. However, points are not for everybody. If you are going to stay in your house long enough to recoup the expense of paying points, then the savings you receive from your lower interest rate will be worth it.