The best rate may not be the best deal! Why? Because fees matter. I have been asked to review the details of offerings from other lenders and it is important to pay attention to charges. The best rate may cost you thousands of dollars to obtain, so is it still the best rate?
Shopping for a mortgage is complicated – so is applying for one. Regulators have created a shopping conundrum; they created the “Loan Estimate” which details all the costs for the mortgage a consumer applies for and those costs and fees are locked down, which means that the lender cannot arbitrarily raise them during the process. The conundrum is that you cannot receive an LE until you actually submit an application for a loan! This is the document borrowers are supposed to use in order to accurately compare loan offerings. Who wants to apply to multiple lenders in order to be confident that they are getting a good mortgage offering?
You do not have to apply for a mortgage in order to get a second opinion from me. Just send in your LE for review! I had a borrower recently who was being offered a rate quite a bit lower than what I had however the LE indicated that the fees for this mortgage were over $6K higher than mine were!!! Rate is only one item to review, the costs matter.
What else matters when shopping for a mortgage? As we say at radius, character matters! Are you being told the truth? Does the loan officer care about and your transaction? Will it close on time without any aggravation? There are many factors to consider when mortgage shopping, rate is only one to consider.
You have love and money on the line when you buy real estate, I won’t break your heart or your bank!