First and foremost, always shop around for home mortgage rates.
Don’t consider a Realtor or Builder’s recommendation to apply for a Home Mortgage with their chosen lender on the basis of their recommendation. “We work closely with this man, and he gets the job done,” they’ll always say. “We play golf together, and he pays for the bottle.” Remember that you will be paying the bill for the next 30 years, not the Realtor.check this link right here now for more info on this.
Mortgage Loan Officers who rely on a referral network of Realtors and Builders don’t need to provide competitive Home Mortgage Rates because they get a steady stream of “Drones” (people who are referred to them but don’t shop) calling them. Shop around for the best Home Mortgage Rate, then approach the “preferred” Loan Officer you were assigned to and ask him to match the quote if you are inclined.
If you apply for a home loan via a chosen lender without shopping around, you might end up paying hundreds or even thousands of dollars more.
Tip #2: Get Home Mortgage Quotes by Calling Until 11 a.m. Eastern Standard Time
Mortgage rates fluctuate during the day, and occasionally even throughout the middle of the day. The prices from the previous day typically expire by 8:30 a.m. the next morning. Home Mortgage Rates are usually released by 11:00 a.m. Eastern time every day. This varies depending on the lender. Often do your rate shopping after 11:00 a.m. Eastern time to ensure you are getting current Home Mortgage Rates and not a combination of rates from the previous day from some lenders and current rates from others.
After 11:00 a.m. Eastern time, get all of your quotes.
Due to a volatile bond market, Home Mortgage Rates will shift in the middle of the day. When this occurs, some Home Mortgage Lenders will change their Discount Points to reflect the new bond prices and publish new Home Mortgage Rates for that day. Other lenders can keep their morning rates in effect.
Tip #3: Always inform the mortgage loan officer that you are ready to submit an application for a loan. RIGHT NOW
Tell the Home Mortgage Loan Officer you’re rate shopping and have a “ratified deal” to buy a house if you’re buying a house. Tell him you’re going to make a decision and Lock-In a rate that day, but you need to consult with a few more lenders first. Tell him he’s the first person you’ve called if he asks how his rates compare to the others. Tell the Home Mortgage Loan Officer you’re able to apply for a Refinance Home Mortgage today if you’re refinancing. If you don’t tell him, he might give you a false Home Mortgage Rate estimate.
Loan officers know you’ll eventually call another lender with lower Home Mortgage Rates, so the only way he can be confident you’ll call him back is to give you a phoney quote that appears to be the lowest. He figures you’ll call him back in a day or two because he gave you a low, fake rate quote and expects you to rate shop for several days. He’s also unconcerned about giving you a bogus quote because Home Mortgage Rates change regularly and are subject to change at any time.
How would you compare quotes if you don’t know which ones are genuine and which ones are part of a ruse? The only way to guarantee you get real quotes is to trick the Home Mortgage Loan Officers into thinking you’re able to lock in a rate right away.
Tip #4: Inquire about the total points and fees.
Ask for the “Total Points” (Discount Points, Loan Origination Fee, Broker Points) for each Home Mortgage Rate when you call a Mortgage Lender. Some lenders would just give you the Discount Points and leave out the Loan Origination Fee on purpose. The 1.00 point Loan Origination Fee will not be shown until you apply for a home loan. Since he’s already received your application and pulled your credit report, the Loan Officer assumes you’ll just approve it at that point. Furthermore, Mortgage Brokers often fail to mention their Broker Fee.