Many of the best real estate investors in the world will tell you that the best real estate deals are often done during times of economic volatility. The most current recession is no exception to this rule.
Savvy real estate investors are able to negotiate much better mortgage rates for themselves in the wake of the Great Recession than they would ever have been able to do in more stable economic times. If you are looking for a home or investment property, heed the opportunity that you have with historically low interest rates and loaning institutions that are looking to quickly get rid of all of the properties on their books.
However, banks are still out to make a profit and they will not give away the information that you need to get yourself better deals. Below are a few techniques that you can use to negotiate yourself the absolute best mortgage rate that a loaning institution is willing to give.
One – There often better deals online then there are face to face.
Many times the best deals for mortgage rates will actually be found online. The same bank will offer better rates online than they do in person because they want to drive business online.
Business that is done online saves the bank money on overhead, building rents, personnel and many other costs associated with finalizing a loan. However reluctantly they do this, they actually do pass on the savings to the customer. Another reason that lower rates are offered online is because they know that competition is much more prevalent online than it is off-line.
Two – Make sure to use mortgage rate comparison websites.
The absolute best deals on mortgage rates are often found on independent, third party websites that make it their business to compare the rates of banks against each other side by side. Savvy investors traffic these websites in high-volume, and banks know that in order to compete for highly affluent business partners, they must offer great deals to the investor savvy enough to look on a comparison website. You want to be in this number.
Comparison websites will likely introduce you to a much wider swath of financial options than you could receive in any other platform. You will be able to compare companies from different geographic locations. You will be able to compare locally and regionally-based companies with national companies. Often, regionally-based companies will have much better rates.
Three – Do not take public interest rates as the final word.
If you go into visit your local banking agent, ignore the interest rates posted on the whiteboard in the front of the bank. These rates are hardly the best rates that the bank has to offer, and you will know this first-hand if you visit those same organizations online.
Come in with your research in hand prepared to move to another institution if you are not treated with the respect of an investor who has done his due diligence. This attitude alone can get you better deals.
– By Sam Adams
*Author’s Bio: Sam Adams is a blogger for Mortgagerates.net and gives valuable advice on anything related to his industry.
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