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Looking Around for Home Mortgage Rate

Savings

One of the worst mistakes that new home buyers make is that they work with an agent who is referred by their realtor or home builder.  Even if they work closely with the provider or have been working with the agent for a long time, don’t fall for it.  Personal affiliation like going out for a beer or doing activities together on weekends doesn’t qualify for a mortgage referral. You make the selection since you will be paying the loan back. Lenders who have a referral or affiliate network may not offer the best rates to borrowers.  The reason for it is they have many people being referred to them.  You need to shop around on your own to find the lowest rate and the best terms. If you have already found the best rate but were referred to another lending officer, then ask if the mortgage rate and terms can be matched. Applying for a mortgage with a preferred lender and not looking for other options is like wanting your bank account drained.  You’ll wind up paying significantly more in the long run due to unnecessary spending. You Want the Loan Immediately When you speak to potential lenders, let them know you need to apply right away. An even better idea is to tell them you’ve found a property that is already under contract by you and you’ve already signed a ratified contract. Let the lender know you will make a decision on the rate right away.  If the lender asks if the rate given is reasonable, tell the person you’re still shopping around. Use these same tricks if you are planning to refinance your current mortgage. This will prevent you from getting a “fake” mortgage rate quote from the lender. Even as early as the initial visit, lenders and loan officers realize they’re not the only people competing to get you to take out a mortgage with them.  This is why they may give you a fake low mortgage rate and surprise you later when it’s not really the lowest rate.  They think you will go back to them because of thinking the rate is low.  They’re taking advantage of the fact that mortgage rates can fluctuate daily based on the current market. Find out about Fees and Points on the Mortgage This is an important question to ask because the number of points may increase your monthly payments.  Do this with every lender you speak to since each one varies.
© Mortgage Hub, All Rights Reserved
Mortgage Hub Mortgage Information

Looking Around for Home Mortgage

Rate Savings

One of the worst mistakes that new home buyers make is that they work with an agent who is referred by their realtor or home builder.  Even if they work closely with the provider or have been working with the agent for a long time, don’t fall for it.  Personal affiliation like going out for a beer or doing activities together on weekends doesn’t qualify for a mortgage referral. You make the selection since you will be paying the loan back. Lenders who have a referral or affiliate network may not offer the best rates to borrowers.  The reason for it is they have many people being referred to them.  You need to shop around on your own to find the lowest rate and the best terms. If you have already found the best rate but were referred to another lending officer, then ask if the mortgage rate and terms can be matched. Applying for a mortgage with a preferred lender and not looking for other options is like wanting your bank account drained.  You’ll wind up paying significantly more in the long run due to unnecessary spending. You Want the Loan Immediately When you speak to potential lenders, let them know you need to apply right away. An even better idea is to tell them you’ve found a property that is already under contract by you and you’ve already signed a ratified contract. Let the lender know you will make a decision on the rate right away.  If the lender asks if the rate given is reasonable, tell the person you’re still shopping around. Use these same tricks if you are planning to refinance your current mortgage. This will prevent you from getting a “fake” mortgage rate quote from the lender. Even as early as the initial visit, lenders and loan officers realize they’re not the only people competing to get you to take out a mortgage with them.  This is why they may give you a fake low mortgage rate and surprise you later when it’s not really the lowest rate.  They think you will go back to them because of thinking the rate is low.  They’re taking advantage of the fact that mortgage rates can fluctuate daily based on the current market. Find out about Fees and Points on the Mortgage This is an important question to ask because the number of points may increase your monthly payments.  Do this with every lender you speak to since each one varies.