Mortgages, like many things in life, are actually negotiable. Whether you’re looking to buy a new home or refinance your current home, you have to look around to find an ideal deal. If you feel like you’re an excellent negotiator, you can try negotiating your mortgage rate and walk away with reduced rates and fees.
Play to Your Obvious Strengths
Get a much better rate than what lenders are offering you. American Loans and other mortgage experts in Utah noted that mortgage rates don’t have a big wiggle room due to the low-interest trend, but you can request to have it reduced according to your strengths. These strengths include a great credit rating and a substantial down payment. Don’t forget to bring proper documentation as support.
Don’t Just Believe the Advertised Rates
Advertising will always have some level of deception. Note that these advertised interest rates are usually targeted to borrowers with good credit and those planning on putting down a huge down payment. This means that you review everything and request for a clear explanation of the different price adjustment schemes, so you can at least try to get a competitive rate.
The Closing Costs
This is another area that could be up for some negotiation, including the document charges, underwriting, and general service. Ask if a lender is willing to waive your fees for application and processing. In addition, you could also request for them to waive carrier fees since sending sensitive documents through FedEx or other reputable carriers can cost a lot.
If you want to increase your chances of negotiating a better interest rate, you must come across as a low-risk borrower to lenders. Having a good credit rating is definitely a plus. Every mortgage deal differs greatly from one lender to another. Don’t go with the lender who offers you the lowest rate yet. Make sure that they’re reliable and trustworthy.