If you are looking for a home, you’ve likely heard that mortgage rates are rising. This can be a major problem for potential homeowners who can have hundreds of dollars added to their mortgage payment. Additionally, home values have gone up, so one could say it’s a seller’s market. That does not mean you are out of luck when it comes to purchasing a home.

Markets can sway back and forth very quickly, but they can also take time to recover, so waiting to purchase a home may not be the best option when it comes to living a healthy, stable lifestyle with a comfortable home. That is why we have created a list of ways to protect yourself from the instability of the market and get a good price and mortgage rate even when the market is tough.

3 Ways to get a good deal when mortgage rates are high:

1. Improve your credit score

After the housing crash of 2008, subprime loans were taken off the table for people with little to no credit and no tangible way to make a house payment. However, there are now “nonprime” loans available for people with credit scores as low as 500. Think they are getting good mortgage rates? Think again.

Mortgage companies are in it for the money, and it is a risk-reward game. Low credit means higher risk, which means you are only getting a loan if the mortgage company is going to make more money.

Reduce your rate to the minimum by keeping a healthy FICO credit score. This may mean waiting a little while to prove good payment histories or paying down some debt, but it is the primary way to get a good mortgage rate.

2. Consider a 15-year

A 30-year fixed rate loan is standard, but cutting that time in half does not cost nearly as much monthly as one would think. It may only cost an extra few hundred dollars a month, and it greatly reduces the amount that you’d end up paying in interest regardless of the rate.

Here is a link to a 15-year mortgage calculator.

3. Lock in your rate

Once your loan is approved, your mortgage broker can lock in your rate. If you are buying in a market where interest rates are increasing, this can save you a lot of money, as mortgage rates can be locked in for months. Get a mortgage broker who is market savvy, and he or she will lock in the rate when the time is right.

Rising mortgage rates can be discouraging to the potential home buyer, but they don’t have to be. A good credit score, shorter pay-off period, and a locked in rate can create a condition that minimizes the effect of the market on the purchase.