Comparing offers from lenders to get the best mortgage deal is a must. It is the smart thing you can do. Below is a guide to help you as you go through the process of comparing loans and assessing which deal is best for you.
Get multiple loan offers
Never limit your option to just 2 or 3 lenders, collect at least 5 before you start comparing. You have two ways to do so, first go from multiple lenders and ask their existing quotes, then hire a mortgage broker to help you choose.
Once you have gotten several offers, the next thing that you can do is compare. This is actually one of the hardest parts, comparing just two lenders is like comparing an apple to an orange. One lender may offer lower rates but may have more fees included. When you compare mortgages, it is necessary that you consider terms, interest rate, characteristics and cost; depending on your personal situation.
Compare mortgages terms
Other than the mortgage rate, you should also compare other factors such as repayment periods, mortgage rate lock periods, mortgage insurance costs, discount points, prepayment penalties and any other characteristics.
You need to make sure that you are comparing all factors necessary; do not focus on just one or two.
For you to get the best deal, it is a must that you know how to negotiate. Lenders are always open for negotiation. Do not hesitate to ask. Below are few of the things you can try to negotiate:
- Lender fees
- Escrow charges
- Title insurance
- Interest rate
On the other hand, below are those that cannot be negotiated:
- Charge for your credit report
- Appraisal fee
- Government recording fees
- Transfer fees
Overall, there is nothing wrong if you try to negotiate. They may have standard rates, but there is always a chance for it to get adjusted when asked.