When you begin searching for a home, it is likely going to be the most expensive item that you have ever purchased. Since most people have to get a home loan to purchase the home of their dreams you should really shop around to make sure you get the best (lowest) interest rate. That should be your utmost concern when you are shopping for a house. When you decide to get the best possible mortgage rate, you will be happy for making the decision in the future. However, making this decision alone is not enough. You should master the strategies that will help you to negotiate with your mortgage lender so that you will be given the mortgage rate that will best suit your personal need.
Always consider the origination fee even if your mortgage rate seems to be low in your thinking. This is because it can also affect your APR. Though the normal rate charged by lenders is 1%, you can negotiate to make it lower than this. Secondly, in a situation where the origination is above 1%, you can either look for another lender or negotiate with the lender to reduce it. You should never pay more than 1% origination fee. When a person wants to buy a home, click to read more at the official site of the Green loan company is done. It will offer all the essential and important information about the project and delivers the right results. The decision of the person should be correct to get the real cash.
Lock in Rate
As you are bargaining with the lender on the mortgage rate, ensure that the lender is ready to fix the rate for a minimum of 30 – 60 days. With this, a sudden rise in the rate will not affect your negotiated rate. You should also include in the mortgage agreement a clause that will make it possible for you to opt for a lower mortgage rate should the rates come down within this period. Many people do not know of this strategy, but it is a wonderful trick because by fixing your mortgage you are protecting against any increase in rate. On the other hand, you will be given a lower rate if the rate goes down.
Prepare for a Drop
However, if you have fixed the mortgage rate without this clause, and it happens that the mortgage rate has gone down drastically within this period you have to work out issues with your lender. Call your lender and let them know that you want a reduction in the mortgage rate even though you have already fixed the rate. If the lender shows signs of resisting, just remind them that it is not too late for you to find another lender. Once they are aware of your seriousness they will be ready to negotiate with you because they will not want to lose your business.
Hopefully these tips will help you in making the house of your dreams a little more affordable. Good luck with the home buying process and always be aware of what your lender is going to be charging you.