Once you know what each lender
has to offer, negotiate for the best deal that you can. On any
given day, lenders and brokers may offer different prices for
the same loan terms to different consumers, even if those
consumers have the same loan qualifications.
The most likely reason for this
difference in price is that loan officers and brokers are
often allowed to keep some or all of this difference as extra
compensation. Generally, the difference between the lowest
available price for a loan product and any higher price that
the borrower agrees to pay is an overage.
When overages occur, they are
built into the prices quoted to consumers. They can occur in
both fixed and variable-rate loans and can be in the form of
points, fees, or the interest rate. Whether quoted to you by a
loan officer or a broker, the price of any loan may contain
overages. Have the lender or broker write down all the costs
associated with the loan.
