Have you ever thought about trying to negotiate your mortgage rate? Most people think that the rate is set in stone. And for the most part, it is. But on average, buyers save $1,500 by obtaining one more quote. When obtaining five quotes, buyers are saving an average of $3,000! It is worth it to take the time to get rates from a handful of different companies. You not only will have some negotiation leverage, but you will also see if you are getting a fair deal or not.
It is important to make sure that you have a good credit score if you are going to try to negotiate. The lender will not want to think they are risking anything with loaning you money. It will also be helpful if you have at least one less expensive quote when negotiating. If you have a less expensive rate, you can ask the lender you want to work with if they can match the less expensive rate. You also have the opportunity to negotiate with discount points. This means you will pay more initially but you will have a lower mortgage rate over time. Discount points do have to be purchased but in the long run, you will likely save thousands of dollars.
If you are in the beginning of your search, a strong mortgage application will give you more power to negotiate. As already mentioned, a higher credit score and a bigger down payment will help. Having lower monthly debts will also help greatly as well.
There are a lot of regulations with mortgages but there is some flexibility that is available. There are some lenders that have more wiggle room than others. For instance, a lender that operates at a lower operating cost will have more wiggle room to play with than someone who has a brick and mortar location and many expenses.
Know what you are bringing to the table and be confident with that when you are in the negotiation stage!