- 1). Research online to find the current interest rates of lenders in your city (see Resources). Make a list of the lowest rates and then expand the search by looking for mortgage lenders that are not in your area. Narrow the choices to the best three offers and make a note of the contact information for each company.
- 2). Call the first home lender on the list and find out if the rate online is still in effect. Ask how long the approval decision takes and make an appointment to fill out an application or have it mailed if the lender is not in your city. Tell the loan officer that you are in the process of searching for the best available rate and will call him back in a few days.
- 3). Contact the other two mortgage lenders and set up a time with both to complete an application. Submit your paperwork and ask when you can expect a decision on the request. Write down when each of the three lenders is supposed to be in touch, and follow up with any loan officer who fails to call in the specified amount of time.
- 4). Examine the approvals from the three lenders and eliminate the worst proposal from consideration. Use a mortgage negotiation strategy designed to make the remaining two loan officers bid for the loan. Call the lender with the higher interest rate and tell her there is a better offer she must beat or you will use the other lending source for the loan.
- 5). Phone the other lender and advise that a different loan officer is now offering a better deal. Inform the mortgage lender that if he does not give you a lower rate he will be out of contention for the loan. Negotiate with both lenders until you are satisfied with the rate and call the low bidder to accept the offer.
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