When you are already decided in getting a mortgage and have set up a plan getting that loan, the only missing step is to get a good mortgage deal to make sure you make the most out of the loan. A good deal is an opportunity every borrower has over a mortgage loan. It is very critical that we take a look at how we can take advantage of getting a good deal. A good deal can spell out big savings and great payment terms. It can help us maximize the resources we have and increase the value of the loan compared to what we are paying back.
Here are five steps you can look at in getting that one good deal.
- Getting your credit standing report
The best way to sell something is knowing what you are selling. When getting a mortgage loan, you are selling yourself to the mortgagor. The best way to know about yourself in credit situations is to by studying your credit score. This will allow you to anticipate what questions and concerns the creditor may have on your credit history and will allow you to prepare for the answers.
- Shop for Mortgage Lenders
This is a critical step. Don’t just settle for the lender next door or the lender that was recommended. Look at different lenders and compare. The advantages that one may offer may not be really an advantage to what you need as part of the loan. Compare the interest rates, payment terms and other matters that form part of the loan. Don’t hesitate to show the lenders that you are comparing them with one another. This gives you the edge to negotiate once you’ve picked your lender.
- Make use of a mortgage shopping worksheet
This allows you to check the same information from each lender. You can identify Interest rates, fees, taxes, insurance costs and other matters that involve the mortgage. It is critical that you gather the same information from different lenders. This gives you the ability to compare and identify the advantages each lender has and which one is right for you.
This is your time to negotiate. Do not hesitate and be shy to ask for lower rates or better terms. Use the information you have gathered and let them know what is possible. Do not ask for something that is beyond reasonable. Nobody wants to deal with people who have selfish intentions. It is important that you consider your lenders position.
- Written agreement
Finally, if a contract is not readily available. Consider getting a written agreement on what has been discussed and negotiated. It will be useful when your contract is delivered in front of your doorstep to sign.