Here Is Your Free Guide To Negotiating A Better Mortgage
Included below are five 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.
Have you received multiple offers from different lenders?
No two loans are the same, so you should always seek at least two 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 competitive, 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.
How much is the rate you were offered costing you?
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. Many lenders will build in what is known as “points” to help you lower your rate. This can be beneficial to get a lower rate, but it comes at a cost to you as the borrower. Knowing how much discount you are paying is quite important to gauge which lender rally has the lower rate for you.
Are you required to pay upfront/out of pocket expenses?
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.
Are you eligible for any specialty mortgage products?
While most lenders have access to the same mortgage products, some lenders like the Doorway Home Loans 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 potential specialty loan products that you may be eligible for.
What is your APR and why does it matter?
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.
At Doorway Home Loans, we work together as a family to make a difference in borrowers’ lives by providing quality home lending solutions. Our culture is built by a diverse group of extraordinary people focusing on our greatest aspirations of serving others and creating a simple experience navigating home lending opportunities.
Contact Us: (866) 462-4891