When you know what every mortgage lender has to offer, get the best deal that you can. On any given time, mortgage lenders & brokers may offer different prices for the same loan terms to different persons, even that those consumers have the same qualifications. Most likely the reason for this difference in price is that officers and mortgage brokers are many times allowed to keep some or all of this difference as extra compensation. In general, the difference between the lowest available price for a loan and any higher price that the consumer agrees to pay is an overage. When overages exist, they are built into the prices given to borrowers. They can occur in both fixed & variable rate loans and can be in the form of fees, points, or interest rate. Whether quoted to you by a loan officer or a mortgage broker, the price of any loan may contain overages!

Ask the lender or broker to write down all the costs part of the loan. Next ask if the lender or broker can waive or reduce one or more of its loan fees or agree to a lower interest rate or fewer points. You don't want that the lender or broker is not accepting to lower one fee while increasing another or to lower the interest rate while raising points. Don't be shy asking lenders or brokers if they can improve terms or can give you better terms than those you have found elsewhere!

Once you are happy with the terms you have negotiated, you may want to obtain a written lock-in from the mortgage broker or lender. The lock-in should include the interest rate that you have agreed upon, the period the lock-in lasts, and the number of points to be paid by you. A fee may apply for locking in the loan rate. This fee may be refundable at closing though. Lock-ins can protect consumers from rate increases while your loan is being processed; if rates drop, for example, you could end up with a less favorable rate. In case that will happen, try to negotiate a compromise with the lender or broker.

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