After you have already picked a lender and found out what they have to offer, there is still another step left for you to handle. You still need to negotiate the best deal possible for you. It is a little-known fact that, on any given day, mortgage brokers may offer an identical loan at a different price to different customers, even if their qualifications are completely identical.

This difference mainly exists because brokers and officers are allowed to keep some or all of the additional charges as extra compensation. This difference even has a name - an overage, measuring the gap between the lowest available loan price and the price the buyer agrees to. Overages won't be itemized - they are built into the costs you agree to pay as a consumer. Overages can be in the form of interest rates, points, or other fees, and can occur in both fixed rate and adjustable rate mortgages.

When getting your loan, you should ask your broker to break down all the costs associated with your loans in writing. After examining the costs, ask your broker to eliminate or reduce one of the listed fees, or require less points or a lower interest rate. Be wary of the lender agreeing to reduce one aspect of the loan while raising another (i.e. requiring less points but raising the interest rates). There is little to no downside to asking your broker to reduce charges. You can save money if your request is granted, and can still take advantage of the original terms if the answer is no.

Once you have negotiated favorable terms, you'll probably want to obtain a lock-in, or an agreement with your broker not to raise your rate or other costs before closing. A fee is commonly charge for locking in a rate, but it is often refunded at closing. Lock-ins also generally last only for a specified period, so be sure not to wait too long to close.

Lock-ins are a great way to protect the rate for which you have negotiated, however, they can be disadvantageous if rates fall before you close. In this case, you may want to get ready for just a little more negotiation before the deal is complete.