If you are in the process of refinancing your home loan, shopping around for the most competitive loan offer will save you thousands of dollars. There are other steps you can take before applying that will improve the interest rate and loan terms that you qualify. Here are three tips to help you qualify for the best mortgage when refinancing your home loan.

I. Clean Up Your Credit First

Mortgage interest rates are on the rise and anything you can do to improve your credit score prior to applying will save you money. Your credit score has a major influence on the interest rate and terms you will receive on your new mortgage. Your credit score is derived from the contents of your credit reports and because these reports are maintained by three separate companies, they are prone to mistakes. Before you apply for any home loan it is important to request copies of your credit reports and carefully review them for errors. If you find errors you will need to dispute the mistakes with each credit agency.

II. Shop Around for the Best Home Loan

Comparison shopping for a mortgage will help you find the best home loan offer. The Internet is a useful tool for quickly locating and comparing mortgage offers. You can easily screen mortgage loans from dozens of lenders with little time and effort. When you compare home loans it is important to compare all aspects of the mortgages you consider, not just the Annual Percentage Rate. There is a simple way to do a line by line comparison to determine which mortgage is a better deal. You can learn more about mortgage comparison shopping by registering for a free mortgage guidebook at the end of this article.