3 tips to getting the best loan rate

3 tips to getting the best loan rate

RICHMOND, Va. (WWBT) - There are three things you need to do to get the best loan rate possible.

Know your credit score!

That score will impact how much interest you’re going to pay on the life of that loan.

The higher the score, the better your rate.

Make a down payment

If you are buying a car or a house, have a sizable down payment. It decreases the cost of the loan. The more you put down, the lower your monthly payments.

And if you’re buying a house, 20% of the total is a great goal, but Cherry Dale with the Virginia Credit Union points out that it may not be realistic for a lot of families.

“Three percent to 5% I think is what you would usually see, especially for first-time home buyers," Dale said. "There are many first-time home buyer programs out there that can help you get the down payment assistance as well.”

Shop around

Whether it’s for a car loan or a mortgage, go to several different lenders to find out what they will offer you.

You just want to do this in a short time frame, around 15 days. Asking several places about a car loan in that time frame will still only count as one inquiry on your credit.

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