Remember: Everything Is Negotiable
April 27th, 2006 by Grant in: Real Estate
This morning I read a post by Dave from the “In Acton” blog had an offer accepted on a house just outside of Acton. Dave has been looking for a house for a while, and has had a few offers shot down recently and had turned a bit disheartened for lack of progress.
However, now the real negotiating begins.
Once you get an offer accepted, you’ve got a lot of details to sort out in terms of the loan. A lender will try to stick you for every last penny they can get, and they hide the details somewhere in paragraph 6 on page 72 of your 150 page loan document.
For instance, the lender may throw in a pre-payment penalty if you decide to sell your house (or refinance) within a certain time frame. In some cases the penalty is 2% of the balance of the loan if you sell within 36 months.
Please note that nearly everything in the loan draft is negotiable. They may not eliminate the pre-payment penalty all together, but you may get them to knock it down to 1% or 18 months.
They want your business, and with the plethora of lenders out there, they know that you can go somewhere else if they can’t move to the middle ground with you.
Something to think about!
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