Here Is Your Free Guide To Negotiating A Better Mortgage
Included below are 5 simple steps you can utilize to make sure you are getting the optimal mortgage. There is so much more to your mortgage than just your rate and we want you to be prepared to navigate multiple offers to find the ideal mortgage for your individual needs.
No two loans are the same so you should always be seeking out at least 2 offers from different lenders. Closing costs, discount points, lender fees, etc, will vary from lender to lender. And while many of these costs will be competetive, by looking at multiple offers you will give yourself a chance to see which lender is truly offering you the lowest cost loan for your borrowing scenario.
Believe it or not, you actually have a decent amount of input when it comes to the interest rate on your home loan. While many factors go into the rate that you are offered, such as your credit score, down payment amount, and the like, as the borrower you do have some say in your rate. This can be beneficial to getting a lower rate but it comes as a cost to you as the borrower. Knowing how much discount you are paying is quite important in order to gauge which lender really has the lower rate for you.
Some lenders may ask you to pay for specific items to start the home loan process. While this is fairly standard throughout the mortgage industry, some lenders, such as the West Coast Mortgage Group, may work with you in good faith to cover some of these expenses up-front, if possible, to help reduce your costs. Additionally, you may see some lenders offering a "no cost loan" which sounds great, however, once you dive into the fine print, you will likely see that your interest rate is being raised up to afford you a credit to cover your expenses. It is important for you to know the differences between pricing and this is a concept that not all consumers are aware of and it can have a big impact on your home loan.
While most lenders have access to the same mortgage products, some lenders like the West Coast Mortgage Group are highly invested in being knowledgeable about different loan products that may benefit our customers. Some of these products only require the borrower to take a simple online class but in turn can offer lower interest rates and even down-payments all the way to just 3%. The process of these loans is no different but the savings to our customers can be dramatic. If you haven't asked already then you should definitely inquire about and potential specialty loan products that you may be eligible for.
Did you know there is an important variable to look at when comparing mortgage offers known as your APR? This item is often overlooked, but the APR is realistically the true cost of your borrowing money to purchase or refinance your house. The APR, which stands for Annual Percentage Rate, is a more broad measure of the total cost of your loan. It reflects not only your interest rate, but also any points, mortgage broker fees, and other charges that you pay to get the loan. Most of the time, your interest rate will be a small amount less than the APR, but if you are seeing a large deviation between the two, somewhere around 1%, then you will want to ask your loan agent why this is the case as well as entertaining other offers.