1. Research and Compare: Start by researching and comparing the mortgage offers from different lenders in the Boston housing market. Look for lenders who offer competitive interest rates and favorable closing costs. Websites like Bankrate and Zillow can provide you with up-to-date information on mortgage rates in your area.
2. Know Your Credit Score: Before approaching potential lenders, it's important to know your credit score. A good credit score can help you negotiate better terms. You can obtain a free copy of your credit report from websites like AnnualCreditReport.com to ensure its accuracy.
3. Pre-Qualification and Pre-Approval: Get pre-qualified and pre-approved for a mortgage. Pre-qualification gives you an estimate of the loan amount you may qualify for, while pre-approval shows that a lender has reviewed your financial information and is willing to lend you a specific amount. This can strengthen your negotiating position.
4. Use a Mortgage Broker: Consider working with a mortgage broker who can help you navigate the negotiation process. Brokers have access to multiple lenders and can negotiate on your behalf to secure better terms.
5. Request Loan Estimates: Once you've identified potential lenders, request loan estimates from each of them. Loan estimates provide detailed information about the loan terms, including interest rates, closing costs, and any other fees associated with the mortgage.
6. Compare and Negotiate: Compare the loan estimates carefully, paying close attention to the interest rates and closing costs. If you find a lender with lower rates or more favorable terms, use that as leverage to negotiate with other lenders. Let them know that you have competing offers and ask if they can match or improve upon them.
7. Consider Points: Points are fees paid directly to the lender at closing in exchange for a lower interest rate. You can negotiate the number of points you pay, which can help reduce your interest rate over the life of the loan.
8. Ask for Closing Cost Credits: Closing costs can add up significantly. During negotiations, you can ask the lender to provide closing cost credits, where they cover a portion of your closing costs. This can help reduce your out-of-pocket expenses.
9. Be Prepared to Walk Away: If negotiations aren't going in your favor, be prepared to walk away and explore other lending options. Sometimes, lenders may be more willing to negotiate when they see that you're serious about finding the best terms.

Remember, negotiating mortgage terms requires thorough research, preparation, and effective communication. By following these steps and being proactive, you can increase your chances of securing favorable interest rates and closing costs in the Boston housing market.

References:

• Bankrate
• Zillow
• AnnualCreditReport.com