Conventional mortgage rates are influenced by the broader economy, but the rate you qualify for depends largely on your personal finances. Generally, the better your credit score, income, and down payment, the lower your interest rate. Here’s how to position yourself for the best possible rate:

Step 1: Boost Your Credit Score

Review your credit report and address any issues. Since conventional loans have stricter credit requirements, improving your score can significantly impact the rate you receive. Even small improvements can make a big difference.

Step 2: Set a Realistic Budget

Just because a lender offers you a certain loan amount doesn’t mean you should max it out. Take a close look at your finances and decide how much home you can comfortably afford, factoring in taxes, insurance, and maintenance costs.

Step 3: Shop Around for Rates

Don’t settle for the first offer you get — compare rates and terms from at least three lenders. This helps you find the most competitive rate and potentially save thousands over the life of your loan.

Step 4: Get Preapproved

A mortgage preapproval gives you a clear picture of what you qualify for and locks in a more accurate rate estimate. Plus, having a preapproval in hand strengthens your position when making offers on homes.