The 13 Secrets Lenders don't Want You to Know

Secret #5

Once you know what each lender has to offer, negotiate for the best deal that you can. The Secret most mortgage companies don't want you to know is that on any given day, lenders and brokers may offer different prices for the same loan terms to different consumers, even if those consumers have the same loan qualifications. The most likely reason for this difference in price is that loan officers and brokers are often allowed to keep some or all of this difference as extra compensation. Generally, the difference between the lowest available price for a loan product and any higher price that the borrower agrees to pay is an overage. When overages occur, they are built into the prices quoted to consumers. They can occur in both fixed and variable-rate loans and can be in the form of points, fees, or the interest rate. Whether quoted to you by a loan officer or a broker, the price of any loan may contain overages.

Have the lender or broker write down all the costs associated with the loan. Then ask if the lender or broker will waive or reduce one or more of its fees or agree to a lower rate or fewer points. You'll want to make sure that the lender or broker is not agreeing to lower one fee while raising another or to lower the rate while raising points. There's no harm in asking lenders or brokers if they can give better terms than the original ones they quoted or than those you have found elsewhere. The Secret most mortgage companies don't want you to know is that it easy to play one company off of another to negotiate the best price. Say something like, "ABC Mortgage will do the same deal, but charge no underwriting fee. If you can beat that, I will go with you". It works every time!

Once you are satisfied with the terms you have negotiated, you may want to obtain a written lock-in from the lender or broker. The lock-in should include the rate that you have agreed upon, the period the lock-in lasts, and the number of points to be paid. A fee may be charged for locking in the loan rate. However, The Secret most mortgage companies don't want you to know is that this is again, negotiable, and sometimes does not have to be paid at all. This fee may be refundable at closing. Lock-ins can protect you from rate increases while your loan is being processed; if rates fall, however, you could end up with a less favorable rate. Should that happen, try to negotiate a compromise with the lender or broker. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net

Secret #6

When buying a home, remember to shop around, to compare costs and terms, and to negotiate for the best deal. Your local newspaper and the Internet are good places to start shopping for a loan. You can usually find information both on interest rates and on points for several lenders. Since rates and points can change daily, you'll want to check your newspaper often when shopping for a home loan. But the newspaper does not list the fees, so be sure to ask the lenders about them.

The accompanying worksheet may also help you. Take it with you when you speak to each lender or broker and write down the information you obtain. The Secret most mortgage companies don't want you to know is that it's ok to make lenders and brokers compete with each other for your business by letting them know that you are shopping for the best deal. They will respect you for that. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net

Secret #7

If your credit report contains negative information that is accurate, but there are good reasons for trusting you to repay a loan, be sure to explain your situation to the lender or broker. The Secret most mortgage companies don't want you to know is that minor credit problems or difficulties stemming from unique circumstances, such as illness or temporary loss of income, will NOT limit your loan choices to only high-cost lenders. If your credit problems cannot be explained, you will probably have to pay more than borrowers who have good credit histories. But don't assume that the only way to get credit is to pay a high price. Ask how your past credit history affects the price of your loan and what you would need to do to get a better price. Take the time to shop around and negotiate the best deal that you can. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net

Secret #8

Us the following Mortgage Comparison Work sheet to save big money!

Click Here to Download the Spreadsheet

Secret # 9

You don't have to put 20 percent down to buy a home anymore. ZERO, Three and five percent down payments are common, and some lenders even offer new zero-down loans to help buyers purchase a home without a hefty down payment. And, in most states, there are lenders that will even finance up to 103 to 107% percent of the home's purchase price, meaning you can finance some or all of your closing costs, and consolidate some bills as well. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net

Secret #10

Buyers should ask sellers to pay for closing costs. As part of the negotiating process when purchasing a home, the buyer should ask the seller to pay for a percentage of the non-recurring closing costs, sometimes saving thousands of dollars for the buyer.

Secret #11

You can receive gifts or grants from relatives or nonprofit organizations. Many loan programs will allow a portion of the down payment to come from a relative. Buyers can also investigate down payment assistance programs and grants available through various nonprofit organizations and employers, as well as from many federal, state and local governments. Many of these programs are designed for low-, moderate- and middle-income borrowers. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net

Secret #12

You should always get pre-approved before you begin house hunting. Buyers should get a written pre-approval from a reputable mortgage lender before they start shopping for a home. Pre-approved buyers will not only know in advance how much home they can afford, but their pre-approved status gives them clout with sellers and real estate agents when the time comes to negotiate a sale price. Lastly, pre-approval speeds up the loan process after a purchase contract is signed and avoids any last-minute heartbreaks after a home is found. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net

Secret #13

You can protect your interest rate while you shop for your home. Some lenders, like Cash Fast Finance, offer homebuyers the ability to lock in a rate, at no cost, before they select a home!

Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net

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