Find the Best Lender

• There isn't a lot of negotiating that goes on with lenders to get the best mortgage loan rate. Most lenders have a set interest rate that they give to borrowers based on their credit scores, down payment and terms selected for the loan. There are ways to negotiate a lower rate by making some adjustments. For example, if you have a negative item on your credit report you may be able to negotiate with the lender to allow you to take care of the negative item before closing so you can have a lower interest rate. You may also be able to speak with a manager to waive additional points, which will save you money in interest charges in the long run.
  
  

Use a Broker

• Mortgage brokers accept loan applications on behalf of several lenders and then try to find the best deal possible for the applicant. By allowing more than one lender to review your application at once you may be able to get a lower interest rate. Some brokers will negotiate with the lenders in an attempt to lower their interest rate offer further, and some lenders will do this if they know that the application has gone to several lenders. There may be a fee for using a broker, so applicants must decide if the fee is worth the possible negotiations.
  
  

Make Your Application Attractive

• If your mortgage loan application is a mess, complete with a low credit score, small down payment, and a sporadic employment history, it's going to be difficult to negotiate a lower interest rate in any instance. You have to make your personal financial picture as appealing as possible to lenders so they will be willing to negotiate. Make sure your credit history is clear of negative items, build up a substantial down payment and don't apply if you don't have at least two years of consistent employment history. If your loan application is undeniably a good credit risk then lenders will want to loan you money at low interest rates.