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Secrets of the Lending Industry.

Updated: Jun 9, 2022

In this article, I'm going to share some of the top secrets of the mortgage industry that will help you get a better deal on your loan.


“After being in the mortgage lending industry for over twenty years, I've seen many things done that most people don't know to happen. ”

Did you know that most lenders have a "par rate"? Par Rate is the interest rate that they offer to their best customers. You'll probably be offered a higher interest rate if you're not considered a top customer. But there are ways to negotiate a better rate, even if you're not considered a top customer.


Most people have no idea that they can negotiate their loan terms with the lender. But it's true! You can negotiate the interest rate, the points, the fees, and even the duration of your loan. So don't be afraid to ask for a better deal.


Another secret is that many lenders charge "points" to originate your loan. One point equals one percent of your loan amount. So, if you're taking out a $100,000 loan, one point would equal $1,000. Lenders often use points to make more money on your loan. But you can negotiate with the lender to either pay fewer or no points.


Lenders don't want you to know that other options exist besides taking out a loan with them. There are other lenders out there who may be willing to give you a better deal on your loan. So don't be afraid to shop around for the best deal.


Finally, did you know that your credit score is not the only factor lenders look at when considering your loan application? Lenders also look at your debt-to-income ratio, employment history, and assets. If you have strong credentials in these other areas, you may be able to get a lower interest rate even if your credit score is not perfect.

These are just a few of the top secrets of the mortgage industry. You must read the small print and be willing to negotiate, but it's worth it in the end. The more you know about the process, the better deal you're likely to get, so keep these in mind. With some knowledge and effort, you can get a great deal on your next mortgage.



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