Finally thinking about joining the homeowner club – negotiation is a key trick of the trade when it comes to mortgages. If you know the power of negotiation, you will save yourself a lot of hassle, money and time in the end.
Becoming educated on the home buying process and the financial aspects of it, can give you the upper hand. Remember the lenders are competing for your business, you don’t have to just settle for what you can get, you can get the best if you know your stuff.
3 Tips to help you negotiate your mortgage
- Calculate your finances.
- Shop around – visit different lenders and listen to their offers.
- Don’t make any impulsive decisions.
It’s important that you are fully aware of your finances. Know your credit score and how much money you have in the bank. If you have a high credit score, try to maintain it. If your credit score is on the lower end, speak with your financial agent to find out the best way for you to improve it. Your finances play a major role in the amount of money you will be offered by lenders and if you are confident with your finances, you will make a better negotiator. Use a mortgage calculator to check out payment and interest options.
Be prepared to visit a few lenders to find the best deal for you. They should lay out all of the information in a clear and concise way, so you will be able to understand 100% of what they are offering.
Think of the big picture – don’t rush it. Take time to think about the offers and what looks the most attractive to you.
There are many mortgage terms that lenders are usually willing to negotiate, but two of the main ones are:
- The Amortization Period
- Interest Rates
Let’s start with what the amortization period is on a mortgage: it is the period of time it will take to repay your debt (mortgage) in installments on a regular fixed schedule. The amortization period makes a huge difference when it comes to your mortgage payments and the amount of interest that you will pay on the mortgage life.
These rates vary but lenders are able to offers some customers ideal rates.
Speak with one of the experts at Northwood Mortgage™ to find the best mortgage for you.