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It’s no secret that a mortgage lender is there to make a living selling mortgages. Since there’s a lot of money involved with their commission, some lenders are willing to use shady tactics to close a deal.
Since most lenders won’t be open with everything during the process, here are five key things that most banks won’t tell you!
#1 “No” Closing Costs
You may have seen the advertisement before, “Apply today and pay no closing costs!” While this marketing tactic may lure you into a mortgage, you have to understand that the bank is going to get the closing fees elsewhere. While your upfront closing costs are minimal, your mortgage payment is going to be a lot higher because of it. If you’re going to take the “no closing costs” approach, make sure you compare the fees to a traditional mortgage. Most of the time, it isn’t a great deal.
#2 Negotiate With Us
If you take a close look at your application and the fees that go along with it, you’re going to notice that the bank is going to charge you for a lot of random things. What most people don’t know is that you can actually go to the bank and negotiate these fees. For example, the mortgage application fee is one of the most common fees that can be waived. Don’t be afraid to ask the bank to lower some of your fees.
#3 We’re Salespeople
While the lender you’re working with may seem nice, you have to understand that they are there to feed their children. Since they probably have to meet quotas like any other professional in the sales industry, they may try to lure you into signing up for a lot of premiums that aren’t necessary. Because of this, you may find that they will lure you into a mortgage product that may not be your best option on the market.
#4 You Better Lock Today
One of the most popular quotes you’ll hear from a bank is: “You better lock into your rate today because they may rise tomorrow!” Again, since these lenders are working on commission, as noted with tip number three, this a pressurised tactic that they will use to close the deal that day. Don’t feel intimidated to apply for a mortgage right away. Even if the interest rates were to go up for the next few weeks, it will be minimal.
#5 You May Get a Better Deal Elsewhere
If you blindly walk into a bank and ask about a mortgage, there’s a good chance you’re not getting the best deal possible. Before you even consider applying for a mortgage, always make sure that you get at least three to five opinions from various banks around town. Even if the bank knows there’s a better deal down the road, they aren’t going to tell you.