If you are not careful when purchasing your first home, you may get stuck with a mortgage rate that will cost you thousands of dollars over the life of your loan. However, if you know a few tricks, you can negotiate terms that are much more in your favor. To do so, heed the advice of noted real estate investor and asset manager Kevin Seawright.
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Find a Private Investor
Before you accept an offer from a traditional lender, Kevin Seawright suggests you try finding a private investor, such as angel investor . By doing so, you can use the offer of your angel investor to see if the bank will lower its mortgage rate associated with your loan offer.
Get Help for Your Down Payment
When buying a home the traditional way, first-time buyers are usually expected to make a down payment of at least 20 percent of the overall price. However, Kevin Seawright and know it doesn’t have to be this way at all. In fact, if you hire a real estate agent who is determined to get you the best deal, you may find there are programs available for down payment relief, grants, and low-interest loans.
Try Getting Pre-Approved
If you have gone to a lender and gotten pre-approved for a loan, this will almost certainly allow you to get a lower mortgage rate. As knows, all banks hate to lose out on a potential customer, especially one who will be making monthly payments for decades. By having a pre-approval in your pocket, you can ask your preferred lender to match or exceed the offer, ultimately saving you thousands of dollars.
By taking the advice of Kevin Seawright and to heart, your search for low mortgage rates will be a success.