How To Negotiate Credit Union Mortgage Rates

If you're in the market for a new home, one of the first things you'll need to do is shop around for a mortgage. And if you're looking to get the best possible deal, you'll need to be prepared to negotiate.

Here are a few tips to help you get the best possible mortgage rate from your credit union:

Know your credit score.

Your credit score is one of the most important factors in determining your mortgage rate. So before you start shopping around, pull your credit report and check your score.

If your score is on the low side, take some steps to improve it before you start applying for loans. paying down your debts and maintaining a good payment history will help to raise your score.

Shop around.

Once you know your credit score, you can start shopping around for loans. When you compare offers from different lenders, be sure to compare APRs, not just interest rates.

The APR includes not only the interest rate but also any fees and points that are charged by the lender. So, a lower APR will always be better than a higher one.

Get pre-approved.

Once you've found a few lenders that you're interested in working with, the next step is to get pre-approved for a loan. This means that the lender will look at your financial information and give you a letter stating how much they're willing to lend you.

This letter will give you an idea of what price range you should be looking at when you start shopping for homes. And it will also make you a more attractive buyer to sellers, since they'll know that you're already approved for a loan.

Make a strong offer.

When you find the home you want to buy, it's time to make an offer. If you're working with a buyers agent, they will help you to come up with a competitive offer.

Be sure to include a pre-approval letter from your lender with your offer. This will show the seller that you're serious about buying the home and that you're already approved for a loan.

Negotiate.

Once you've made your offer, the seller will either accept it, reject it, or make a counter-offer. If they make a counter-offer, this is your chance to negotiate.

Be sure to take your time and don't be afraid to walk away if you're not getting the deal you want. There are other homes out there, and there's no reason to settle for less than you deserve.

By following these tips, you should be able to get a great mortgage rate from your credit union. Just be sure to do your homework and be prepared to negotiate.