If you are in the process of obtaining a mortgage you should know that there are a lot of fees that you can negotiate to make your even more. When it comes to your mortgage you should not be afraid to negotiate, as these are fees and such that you will be paying on for as long as 30 years. Other fees are those that you will have to pay as a part of closing costs and anyone who has ever bought a house knows how fast closing costs can add up. Many a new homeowner has suffered a serious case of sticker shock when they show up at their closing.
Negotiating Your Fees- When you negotiate your mortgage fees you can save hundreds, thousands, or even tens of thousands of dollars. For this reason, you should seek to negotiate every possible fee that there is. Many consumers believe that just because the fee is printed out that it is something that they have to pay, but this is not true. When you receive your mortgage quote or good faith estimate you should pour over it with a fine tooth come. One of the main areas that you will want to focus on is the lender and broker fee. These fees are often broken down into points, for instance a $500,000 loan that will charge you two points as a broker means that the broker is receiving $10,000 for the work on your loan. Does the broker really need to make this much? Probably not, but unless you negotiate he will!
Another area that you will want to look at is if you are being charged to buy down your loan. Many lenders allow for you to pay to lower the interest rate of your mortgage loan, but you should look at this and see if you cannot negotiate down the charges or do away with them altogether. You may also find an origination fee, which is basically a charge to you for borrowing the money, but aren’t you already paying interest?
Calculate your debt-to-income ratio and pay off some of your debt, if possible, beforehand. Lenders now use an applicant’s debt-to-income ratio more than ever, as this is often the clearest indication of whether you are financially prepared to take on another debt, especially one as large as a mortgage. Be prepared to show the lender the source of your down payment money. In other words, get the money you will need for your down payment into some kind of investment or savings account and keep it there for at least three months so that you will have the documentation necessary to back up the money source.
Arizona is a great place to live in, whether you are living for just the winter or all year round. The summers are nice and dry with no humidity at all, and the winters are one of the best in the United States. The best thing about Arizona right now is the extremely low AZ Mortgage Rates for foreclosed homes. Just think about what you can do with the huge amount of money you save if you buy a house in Arizona.
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