Top mortgage do’s and don'ts are especially important in 2017. Last December the Federal Reserve raised its key interest rate by 0.25% – marking only the second rate increase in a decade (the first time was in December 2015).
While a rate hike doesn’t always lead to higher mortgage rates, this particular hike comes at a time when rates on 10-year U.S. Treasury notes are rising. As the 10-year note yield and mortgage rates tend to be correlated – and experts anticipate that the yield will hit at least 3% by the end of the year (up from 2.42% today) – we can expect mortgage rates to rise in 2017. With that in mind, we thought it made sense to look at a few do’s and don’ts to remember if you’re planning on getting a mortgage in 2017.
Lenders review your credit report to determine if you qualify for a loan and at what rate. It’s free to check: By law you are entitled to one free credit report every year from each of the “big three” credit rating agencies: Equifax, Experian and TransUnion. Take a close look at your credit report to make sure it’s accurate, and if there are mistakes, take steps to fix them. In particular, watch out for things such as debts that have already been paid, information that isn’t yours (due to a mistake or identity theft), data from a former spouse that shouldn’t be there anymore, out-of-date information and incorrect notations for closed accounts.