How to Negotiate Home Loans With Bank of America
Negotiating your home loan with Bank of America requires diligent research and a strategy to obtain the fairest rates and fees as possible. The two most flexible areas of a home loan are the closing fees and the interest rates. Bank of America handles all fees and interest within the bank, so the bank does not need to defer to rigid costs and structure of a third party therefore, you should target the fees and interest as areas where you can successfully negotiate for better terms.
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Instructions
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Secure mortgage quotes from competing lenders in your area and nationwide.
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Make an appointment with a loan officer at a local Bank of America branch or call a loan officer between the hours of 8 a.m. and 11 p.m. Eastern Standard Time, Monday through Friday and 8 a.m. to 8 p.m. Eastern Standard Time on Saturdays.
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Give the loan officer the pertinent information for the home loan you are seeking including the amount of the loan and your Social Security number for credit review.
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Review the terms presented by the loan officer for the loan you are seeking. Usually multiple terms will be presented for varying lengths of repayment schedules.
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Request an itemized list of the costs associated with the loan. Find out what the closing costs are specifically and individually as well as the interest rates for each of the terms presented.
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Request that the loan officer match the lowest quoted interest rate you have discovered from competing lenders for the term length that you favor.
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Request of the loan officer that Bank of America absorb some or all of the closing costs to secure your business. If your request is denied, notify the loan officer that should you choose to finance through Bank of America, the parts of the closing costs, including the title indemnity insurance, title search and title examination, will be handled by a third-party title company.
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Ask the loan officer if a cosigner would strengthen your application and in turn result in a lower interest rate for the balance of the mortgage. Find out what the interest rate would be, given your credentials, with a larger down payment.
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Summarize all of the areas you discussed with the loan officer. Recap your requests for lower closing costs and interest rates. Restate the difference, if any, in the terms should you secure a cosigner and furnish a larger down payment.
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Make an offer. Detail your willingness to provide a certain down payment and keep some or all of the services that make up the closing costs within Bank of America in exchange for lower, fixed rate of interest.
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