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People will spend months or even years planning to buy their own home. They will work hard to build good credit. She saves a substantial down payment. She finds the perfect home. Then they will be satisfied with the first mortgage they see.
What’s wrong with this picture?
Important to remember that if you have good credit and down payment then you are in the driver’s seat when it comes to negotiating a mortgage. You are the dream customer that lenders want on their books. Even if your credit is not perfect and your down payment is that you still have customers who rely on a large number of lenders.
Repeat this mantra as a lender pretending you a favor by lending money: I will give them lots of money. Yes, you. In the next five to 30 years pay much interest to this lender and repay principal they originally set. They do not give you anything. This is a business deal and the lender stands to make lots of money, so you need to protect yourself the best possible deal.
While most lenders tend to you think you should thank them for taking this big risk for you, it’s really the opposite. A mortgage lender can not lose. If you honor the deal they will make lots of money and if you do not honor the deal they are simply your home and keep the interest you paid in the meantime!
But there is a bigger mistake that lenders want to capture. They do not want you to know how desperate they are for your business. Look around and you will realize this truth. View television ads, radio and print in abundance and you will see the mortgage lender to be very competitive.
So you just have to orient themselves to the best mortgage deal for you to find. At the end you can save thousands of dollars. Here are five ways to help you get the best deal:
- The quest – Get quotes from different lenders. Look across the country and lenders and not to ignore the Internet.
- Compare terms – Interest rates vary from lender to lender but lenders offer different interest rates depending on the terms of the mortgage. How long (15, 20 or 30 years)? Will it be fixed or variable?
- Tweak some optional items you can control, such as the type of insurance you will be taken and whether you use escrow for taxes, etc.
- Adjust your down payment – Sometimes a percentage of what you can to put a difference in terms of the lender (the same would be cheaper for a house to work together to buy) to increase
- Offer – Yes! Lenders often as though their rates are written in stone, but this is not the case. This is where shopping around can be really useful. If you can show you a slightly better deal with another lender have then sometimes another lender will lower their rates to competitors. Hey it’s worth a try!
Remember that you control your future. You can choose whether to accept the mortgage lenders terms. There are many lenders out there, so you do not have to go with the first offer you receive.
A final note: It may be best to go through this process before you’ve found your dream home! One can also pre-approved for the loan with most lenders and that the pressure and worry about losing the house of your dreams while you negotiate with lenders. You will also be in the driver’s seat when negotiating to buy a dream house when you finally find if you already have a mortgage ready to go.
