3 Ways To Compare Mortgage Lender Rates
by Mortgage Shopper
Ask Kate for 3 ways to compare mortgage lenders and interest rates: Hi Kate, I was shopping around to refinance my home loan. One mortgage broker had an indicator that the interest rates were going up and convinced me to lock in with one of the last banks offering the rate that he had quoted me the day before. I'd been worried that interest rates were going to go up.
Two hours later, another lender told me that the rates had dropped and offered me a better rate for my mortgage.
So I told the mortgage broker that I wanted to lock in.
I called my broker back to cancel the rate lock and he pushed back.
He told me that if I backed out, he would incur a penalty from the bank.
I was told by the other mortgage lender that banks didn't do that.
Who do I believe?
Kate answers: 3 Ways to Compare Mortgage Lenders and Interest Rates:
Dear Mortgage Shopper
It's plausible to believe both.
Policies vary among mortgage companies when it comes to their loan officers locking rates.
Because one bank is more forgiving toward a mortgage representative who loses a rate lock, another may be less accommodating.
But I believe there is a bigger point to this story. You'll find it here in my three steps to comparing interest rates.
1st Comparison - Preapprove Your Lender
First of all, you need to preapprove your lender. As odd as this may sound, I assure you I'm not suffering from dyslexia. This isn't about encouraging you as a borrower to go through the process of preapproval. I actually mean to say that loan applicants must learn to qualify lenders.
The best way to preapprove a lender (and get the lowest rates) is to ask the right questions. My neighbor Robin learned that a rate quote alone means very little without first interviewing a lender. Read about Robin... You Deserve More Than An Interest Rate Quote
and then come back here.
Convinced? Then let's move onto the questions.
2nd Comparison - Ask The Right Questions
Robin didn't know the right questions to ask. She learned the hard way that knowing what to ask
is the pathway to getting the lowest mortgage rates.
I want you to learn from Robin's costly mistake. So I am passing along a group of questions to ask regarding mortgage rate lock
And of course, you can always write me back if you don't understand your lender's answers.
3rd Comparison - Get Lock Terms In Writing
If you forget everything you read here, remember this! Get your mortgage rate lock in writing.
Otherwise, you are at the whim of the financial markets and a mortgage lender policy that might be full of surprises. How To Get a Rate Lock Policy In Writing
Tip: Keep these two little words in mind as you shop for a mortgage... In Writing.
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