How to Negotiate With Mortgage Companies
How to Negotiate With Mortgage Companies
Dealing with a bank or a non-bank lender is like walking into the office of a nuclear physicist and trying to have a discussion about physics. You probably understand the basic concepts, but a professional has a deeper grasp than you do. That’s what makes that person a professional. Negotiating with a lending company is the same way; they are going to be very well-prepared and incredibly knowledgeable about mortgages. You need to make sure you have a few things ready before you show up to discuss the mortgage.
Detailed Finances
When you negotiate with mortgage companies, you need to have your finances figured out beforehand. You should know how much money you have made in at least the previous fiscal year, how much you plan to make in the next few years, and a brief explanation of why you believe you’ll be able to make that amount. For example, if you have consistently increased your profits by four percent annually, you can probably plan for at least a few more years of four percent growth. You should walk into your negotiations with that information on hand. That will help you have some leverage when you begin to discuss specific payments and interest rates.
Keep in mind that mortgage companies charge higher interest rates to those they don’t believe will pay off the mortgage. If you can provide a detailed explanation as to how and why you will pay it off, you’ll have a distinct advantage.
Do Not Get Attached
One of the most important pieces of advice is to always be willing to walk away. Mortgage companies want you to borrow from them. They’ll be very willing to make certain concessions for you in order to get your business. In a sense, that gives you the upper hand in negotiations. You only have that upper hand as long as you’re willing to walk away, though. Keep in mind that there are several lenders you can work with. Don’t get too attached to one and give up your leverage.
Stay Realistic
It’s also important to stay realistic. Mortgages sound like very expensive endeavors because they are designed to be so long-term. You’re probably not going to be able to secure exactly the mortgage you wanted, but if you stay realistic, you can probably secure one that is pretty favorable.
If you follow these few steps, you should be able to secure a pretty decent loan.
Written By Econloan.com