Finding the right home for you is our primary goal, but enjoying it with a lower payment and better mortgage terms is a very important secondary goal.
Should you shop around for mortgage lenders?
Yes, absolutely. You will want to consider different options and ask each about rates, loan terms, down payment requirements, property insurance, closing and fees of all kinds and compare these details so that you can negotiate the best deal.
As you begin to search for a mortgage lender it is important to:
- Know your credit score and history
- If applicable to you, ask about first-time home buyer programs
- Compare interest rates and more from several lenders
- Get pre-approved
Although financial experts recommend applying for loan pre-approval with multiple lenders, consulting more than three lenders is generally a waste of time and money as loan offers beyond this will vary minimally, if at all.
Will shopping for mortgage hurt credit scores?
Looking for new credit can equate with a higher risk, but most credit scores are not affected by multiple inquires from auto, mortgage or student loan lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on your credit score.
Can you really negotiate a mortgage rate?
Yes, you can try to negotiate the interest rates presented by the lender, much will depend on your qualifications as a borrower. Generally speaking, well-qualified borrowers have more negotiating power. You can also use prepaid interest points to negotiate a lower mortgage rates. The amount of interest reduction will vary from one lender to the next. Generally speaking, one point will equate to .25%. Example: If a lender offers you a rate of 4% with no points, you might choose to pay one point at closing to reduce the rate to 3.75%. Two points would bring it down to 3.5%.
At True Realty we've researched and worked with many mortgage brokers and lenders. We can help you contact those that are the best for you and your financial picture. Give us a call today @ (720) 305-0757 to get started in finding mortgage lenders with competitive interest rates that best fit your needs.