How To Negotiate The Best Mortgage Loan Deal

Last Updated 1/12/2015

What smart tips and tactics can help home buyers land the best deals on a purchase mortgage loan today?

It’s a great time to buy a home and get a home loan, but it is always wise to ensure you are getting a good deal with a financial decision as big as purchasing a new home. The following tips will help you better hone in and score the best loan rates and terms for you.

Tips to Negotiate the Best Mortgage Loan Deal

Shop Around

The first offer might be the best, but it is wise to get at least 3 quotes for a purchase mortgage to ensure you are getting a fair deal.

Compare Apples to Apples

When shopping around to compare loan rates and mortgage lenders make sure you are comparing apples to apples. If certain fees appear on one estimate and not another, find out why. Ensure you are not just comparing interest rates either, but the actual APR, and loan terms.

Do a Little Snooping

It’s definitely worth performing a little reconnaissance and seeing what others have to say about your short list of lenders and loan options before getting in too deep. What’s their reputation for getting mortgage loan applications to the closing table, and doing it on time, as initially promised?

Choose the Right Loan Program

Choose the right loan for your scenario. There are many to choose from. Part of getting the best deal, is applying for the best mortgage loan for your personal goals and lifestyle design. Are your priorities the lowest possible payments now? Low down payment? Or paying off the loan as quickly as possible so that you don’t have a mortgage in retirement? Ask about various options and trade-offs such as points, pre-payment penalties, etc.

Find the Right Match in a Mortgage Lender

Finding the right pairing in a lender is critical for getting the best deal on your personal home loan. Some lenders don’t like loaning in certain areas and will find a multitude of excuses to turn them down during the process or just nitpick the loan application to death. Even if they do make the loan they’ll often charge higher rates for states, counties, zip codes, or property types they don’t like.

Interview Your Loan Officer

Your direct contact will have great influence over your loan application, whether it gets funded or not, if it closes on time, and what the final terms are. So find out if they are experienced and motivated enough to put in the necessary hustle.

Always Negotiate

It is always worth asking if they can do any better. You’ll often find that just asking can score hundreds or thousands of dollars in discounts. However, it is also wise to know when to stop. If your loan application becomes more work than it is worth, then don’t expect too many people in the process to put a lot of energy into it. Know when to value great service.