When it comes to purchasing a home, many factors come to mind. Location, Space, Price, all of which
can make the difference between your dream home and just another house. Our agents will work with
you to make sure that you see as many options as you desire, as well as, provide you with all the necessary information that you need to make a decision. We will provide a comparative analysis, which details the values of other homes in the areas. Also, there are financial issues you will need to consider such as how much of a down payment you can afford, the type of mortgage you will qualify for, and closing costs. Getting pre-approved shows the seller that you are a serious buyer, and will give you the buyer a realistic view of how much money you will be given by a lender.

WHAT TO DO WHEN SHOPPING FOR A MORTGAGE.

An overwhelming majority of homebuyers never negotiates, but negotiating will always increase your chances of getting a cheaper loan. The executive vice president at Countrywide Funding says negotiating is definitely a wise idea, but few individuals try. Interest rates are not negotiable, but you can get a quarter-point break or more on the points and discounts on the attorney’s fees. On a $350,000 mortgage, a quarter of a point equals $875. Another $200 to 500 for discount on the lawyer’s fees, and this starts to become an interesting amount of money certainly enough to make posing the question profitable.
Several lenders are willing to negotiate interest rates, especially if you make it clear that they will not be
getting your business otherwise. Try to get 0.5 of a percentage point off the rate on a $350,000, 30-year
mortgage you would be able to save $10,955.93, from 8% to 7.875%. In the current market, consumers with a credit rating of 700 or better have more negotiating advantage than ever before.

You may want to know what really is negotiable and the answer to that is almost every aspect of the closing cost. The trick is to ask for what you want within reason of course. Always go over good faith estimates carefully and look for ways to alleviate some of the unnecessary charges. You can always pretend to have other intentions/resources, which means that you can go somewhere else or you can stay, but you cannot count on fooling you lender about the competition. Banks have a clear sense of
the market.Being a customer has benefits, a lender will try hard not to let you find out that a better deal might be right around the corner. When negotiating for a better deal, remind them of your long history banking with them and how much you have on deposit. If the plan is to bring future business to your bank, you can push a little harder. If you can convince a lender that you are the type of customer that will bring them profitable business in the future and not be loathsome in doing so along with showing that you are the type of customer that is willing to drive an hour to save another seventy-five dollars, you will always get the best deals.

HERE ARE YOUR NEGOTIATING POINTS

Lender attorney's fees: Tell your mortgage representative you would rather not pay for their lawyer. Explain that it is a conflict of interest. Identify other lenders that do not charge for a lawyer service. (Avoid mentioning that other lenders may have a higher percentage point rate.)

Document-preparation fees: This charge, which can be $250 to 500, can go down to zero when your mortgage provider knows that they are competing for your business and you are able to demonstrate this.

Percentage Points: Different lenders will offer choices a discount on either the points or the rate. Several
lenders are apprehensive about playing with market rates however, they are willing to adjust points if it seems fruitful to them.

Mortgage Rate : It's a good idea to shop around as much as possible so that when you sit with a lender you can refer to the competition by name. Let the lender know that they have a hard fight for you business. Keep a record of the different rates that your mortgage provider will have to beat. If your bank will only match your best rate, inform them that you might just want to go with the competition because they are not matching anyone and their fees are lower. After all, you already have that deal in the bag if you want it. Let them know that they have to throw you a lifeline. Nothing is guaranteed because you do not know what the lender will do but hey, it’s worth an effort. If you truly plan to take your business somewhere, else tell your mortgage broker/banker clearly, what the terms are that you are going to accept. If they respect your business, you might stand to do very well.

Regal Realty is here to both educate and service you. Call today for an appointment.