Top 5 Tips on How to Negotiate the Best Mortgage Deal

Negotiating a mortgage for your new home can be stressful and intimidating. Here are 5 negotiating tips that you can add to your checklist:

1. KNOW YOUR SCORE – Checking your credit considerably beforehand is very helpful. This way, you can find out if your credit score is ranked high enough to negotiate better terms. If your score is below 700, then taking the time and effort to fix and enhance it will be worth it, otherwise your mortgage may end up being unfavorable.

2. DO YOUR RESEARCH – Reading up on the business of mortgage lending and how the time of action works can be very advantageous to your negotiations. If you know what you are talking about, chances are that you will be taken seriously. When mortgage “lingo” is being tossed around, you will understand what is being said and will be able to respond intelligently. Use this knowledge as your negotiating leverage.

3. READ THE FINE PRINT – While this may seem like a redundant and obvious tip, many buyers zip right by to the end of mortgage documents without carefully reading everything. The “fine print” can be intimidating to digest, but you will find that most of it is quite easy to understand. Most importantly, if you do not understand anything or have any questions…ask!

4. SHOP AROUND FOR TITLE INSURANCE – Comparing costs for title insurance at Web sites like Ask your real estate broker to help you comparison shop and rule you to the right places to estimate which company is right for you.

5. ASK FOR THE GOOD FAITH calculate EARLY – If you ask for the GFE early, there is a better opportunity for you to get any unanswered questions solved. If you have any concerns, you can always seek the advice of your real estate broker.

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