Be Ready To Negotiate These Things When You Apply For A Mortgage

One of the nice things about applying for a mortgage is that many different elements are up for negotiation. It's not a matter of sitting across from a mortgage professional, giving him or her your financial information, and then hearing the amount that you'll be paying. Just as you might negotiate a number of factors when you're buying a new vehicle, you can take a similar approach to getting a mortgage — and you can certainly approach different lenders to see which will suit your needs the best. Here are some things that you should be ready to negotiate when you apply for a mortgage.


You might be surprised to know that you can negotiate the mortgage rate itself. When your mortgage expert gives you a rate, you can assess how well it works for you. There's nothing wrong, much like when you're buying a vehicle, with saying that you appreciate the rate, but that you're actually looking for something slightly different. This can especially be a useful strategy if you've shopped around and obtained mortgage quotes from a variety of lenders. For example, you can then say that a certain lender has quoted you a better rate than you're currently being presented with, and see how this information can affect the negotiation.

Payment Schedule

Many people pay their mortgage monthly, but there are a handful of different payment schedules that you can negotiate with your lender. You'll often find that comparing different payment schedules can affect the amount that you pay over the course of the year to a slight degree. For example, if you're concerned about one larger payment at the start of the month, you might wish to ask about getting a quote for paying twice a month. Many lenders will even allow you to pay weekly.


Your lender will also present you with different terms for your mortgage. For example, he or she may give you specific quote for a three-year, five-year, or seven-year mortgage. Some lenders will be anxious to get you to sign up for a mortgage with a longer term, but this is also something that you can negotiate. There are advantages to longer terms and shorter terms, depending on the rate you're getting and other factors, such as the overall shape of the economy. It's advantageous to do some research in advance to determine your ideal rate, payment schedule, and term, so that you're prepared when you sit down across from the lender.

For more information, contact a local real estate specialist.