Making smart decisions when it comes to choosing a mortgage loan can save you a huge amount of money for years to come.
We talk a lot about interest rates. In most cases, the rates we’re discussing are base rates without any points or fees added by mortgage lenders. Many lenders may not want you to know this, but those points and fees may be negotiated to your best advantage.
A recent survey showed that, while 4 out of 5 Americans consider themselves bargain hunters, less than 30 percent of consumers actually look for, or ask for, better terms for their home loan.
Why is it so important to shop lenders?
There are several reasons. The main one of course would be….money! Aside from lender fees that you would pay as a lump sum at close of escrow, even negotiating your interest rate a few fractions of a percent can save you thousands of dollars over the lifetime of your loan. What’s equally important is the level of service you can expect from your mortgage lender. Finding out how easy it is to have problems resolved through their customer service branch, or even if a lender regularly sells your loan to another bank are good things to know up front.
Shop loan options as well.
A good lender will assess your financial wants and needs, and then discuss loan options that will fit your ultimate real estate goals. They will provide you with short term and long term options, as well as plans that can help you pay off your loan balance more quickly. Make sure you ask about various loan options when you sit down to discuss your home purchase.
Good credit goes a long way.
One aspect of negotiating a loan that works for you is to have your finances firmly in place beforehand. Taking steps to improve your credit score and reduce your debt-to-income ratio go a long way toward showing credibility in the negotiation process.
Ready to purchase a home? Contact Team Avalos with your questions, and we’ll put you in touch with top quality lenders who work locally to help you reach all of your real estate goals.