Ask Any Of Your Loan Topic Questions

I'm purchasing a new home and weighing financing options.?

rio180 - 2008-03-28 07:25:24 - Renting Real Estate

Are there any good negotiation tactics to use with either a bank or mortgage broker to try and get a good deal (i.e. lower interest rate, no closing costs , no points)?

Best Answer:

Answers:

In today's world, be happy a lender will even lend you money. Seeking a deal at this point is like shooting yourself in the foot. Don't be pennywise and pound foolish!

Any lender that offers to pay your closing costs is doing so by charging you a higher interest rate, so that they can cover those costs. It's better to go with the low rate and try to negotiate those fees down some by comparing good faith estimates from a few lenders. And you only have to pay discount points if you choose that is never something required by a lender. Expect usually these fees if you use a broker 1% origination (can be negotiated), processing fee, committment fee (from the lender). To cover closing costs negotiate that with the seller if you are buying a property that way you still don't have to pay but you get the lowest rate possible.

Nothing outside of the normal tactics. Most lenders will tell you they charge 1-2% origination fee`s. I wont pay more than the 1%. However i do not like to pay that much. They need the business at this time. They will also look at the companies that will pay them the most as they would say kick back money. So shop around for the best interest you can get. Most lenders sell there loans anyway. Try going direct to the lenders. You generally can get better deals. Good luck with your new purchase.

The #1 and really only "good negotiation tactic to use" is CA$H, beyond that factor you have little power to wield; and, unfortunately, even home(s) you own now mean little, until liquidated.