Best Home Mortgage Deals

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Do You Know How To Find The Best Mortgage Deal?

People will spend months or even years planning to buy their own home. They will work hard to build good credit. They will save a sizable down payment. They will search for the perfect house. Then they will settle for the first mortgage they see.

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Money management
Personal finance budgeting

This Is A Business Transaction 

It is important to remember that if you have good credit and a down payment then you are in the driver's seat when it comes to negotiating a mortgage. You are the dream customer that lenders want on their books. Even if your credit is not perfect and your down payment is nonexistent you are still an attractive client for many lenders.

Repeat this mantra whenever a lender acts as if they are doing you a favor by lending you money: I am going to give them a lot of money. Yes, you are. Over the next five to 30 years you are going to pay a lot of interest to this lender as well as repay the principal they originally put up. They are not giving you anything. This is a business deal and the lender stands to make a lot of money so you need to protect yourself to get the best deal you can.

Mortgage Lenders Need You 

It is important to remember that if you have good credit and a down payment then you are in the driver's seat when it comes to negotiating a mortgage. You are the dream customer that lenders want on their books. Even if your credit is not perfect and your down payment is nonexistent you are still an attractive client for many lenders.

Repeat this mantra whenever a lender acts as if they are doing you a favor by lending you money: I am going to give them a lot of money. Yes, you are. Over the next five to 30 years you are going to pay a lot of interest to this lender as well as repay the principal they originally put up. They are not giving you anything. This is a business deal and the lender stands to make a lot of money so you need to protect yourself to get the best deal you can.

Shop Around 

That is why you simply must shop around to find the best mortgage deal available for you. In the end you could save yourself thousands of dollars. Here are five ways to help you find the best deal:

~ Shop around - Get quotes from various lenders. Look at local and national lenders and don't overlook the internet.
~ Compare terms - Interest rates vary from lender to lender but lenders offer different interest rates depending on the terms of the mortgage. How long will it be (15, 20 or 30 years)? Will it be variable or fixed?
~ Tweak some of the optional items that you control, such as the type of insurance you will carry and whether or not you will use escrow for taxes etc.
~ Adjust your down payment - Sometimes being able to increase the percentage of what you are putting down can make a difference in the lenders terms (similarly buying a less expensive house will work the same)
~ Haggle - Yes! Lenders often act as if their rates are written in stone but this is not the case. This is where shopping around can really come in handy. If you can show that you've got a slightly better deal with another lender then sometimes another lender will lower their rate to beat the competitor. Hey it's worth a try!

You Are In Control 

Just remember that you are in control of your future. You can choose whether or not to accept a mortgage lenders terms. There are a lot of lenders out there so you do not need to sign with the first offer you receive.

One last hint: It might be best to go through this process before you've found the home of your dreams! You can get preapproved for a mortgage with most lenders and that removes the pressure and worry of losing the home of your dreams while you negotiate with a lender. It also puts you in the driver's seat when you are negotiating to buy that dream home when you finally find it if you already have a mortgage ready to go.

More reading 

More Mortgage Meltdown: 6 Ways to Profit in These Bad Times

Amazon Price: $18.45 (as of 07/12/2009) Buy Now

Mortgages For Dummies, 3rd Edition

Amazon Price: $11.55 (as of 07/12/2009) Buy Now

More Money Management Advice 

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Questions & Answers 

Lensmaster

jamesanderson1346

Good lens. Read Free Articles on Mortgage and other Financial terms.

ReplyPosted March 24, 2009

stargazer00 wrote...

Welcome to the Money Saving Tips Group!

ReplyPosted January 23, 2009

nancydodds1 wrote...

Its very interesting and good information from your lens. Thanks for sharing the valuable information.

ReplyPosted October 14, 2008

tdove wrote...

Thanks for joining G Rated Lense Factory!

ReplyPosted May 12, 2008

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