Do you trust the lender to give you the lowest rate? Do you know enough to make sure you're receiving the best mortgage loan? Lenders do not expect you to shop around for quotes. Realtors expect you to use their trusted lender. NO! Shop for the best rate. Comparing quotes is very difficult and time consuming, but you can save thousands. Bottom line: the lenders won't advise you to request the quote on the same day and time. Because rates move minute by minute, requesting quotes from all the lenders on the same day and all within approximately 1 hour of each other is the only way to accurately compare rates, points, fees and payments. Here’s why: rates may change by 125—375% in the same day, which can make a big difference to you over 30 years.
Every lender states that they have the best rates. Shocker!! But there are always differences. If you are refinancing and you call your current lender, you may see rate quotes as much as .50% higher than other lenders, i.e., 4% versus 3.5%. How can that be? Here are a few simple steps to follow.
1. Be prepared. Gather your information, such as loan amount, property value, term, etc.
2. Go online to request your free credit report. Look for any inaccurate information. Has a credit card company reported late payments? Did you forget about a medical collection? Get these issues resolved ASAP.
3. Find 3 or more lenders you believe might have the best rates and best customer service. My belief is that you don't know who has the best rates until you complete the comparison. Salesmen are great at convincing you they have the lowest rates and best service. So, research them first.
4. Beware of online lenders. Use them only if you are willing to give up personalized service for price. I've seen too many borrowers experience bait and switch, with lenders increasing rates and/or fees when it is time to fund the loan. Look at a few social media complaints to verify.
5. Feel free to use a friend’s referral. However, I suggest comparing their quote to several other lenders. Just because your friend trusted someone doesn't mean they shopped around, received the lowest rate or that you will receive low rates and fees.
6. Request quotes on the same day and time. Again, rates change by the minute, so it is extremely important for an accurate comparison.
Compare and Negotiate
Knowledge is power. Compare the rates, fees, points and payments side by side. Is one lender better than the rest? In addition, most lenders don't advertise your right to negotiate, but if you want to make sure you get the best deal, ask for better terms. Or, to save the most time and money, I’ll do it all for you, because I know trusted, experienced, low rate and fee lenders that I've worked with for years.
The Mortgage Fee Coach can save you a lot of time and thousands of dollars. And in case you’re wondering — I am not paid by realtors or lenders. I’m on your side, an advocate for you. Contact The Mortgage Fee Coach.