Question is a pretty common one, most consumers typically compare at least 2 to 3 lenders to see who has the best combination of the lowest interest rate and lowest fee. What people are really trying to find is the lowest cost mortgage and rightfully so, taking out a home loan is a big financial decision.
You might find in lender during your comparative loan shopping that is substantially better than the other competitors. Ask yourself the question why? How is he able to offer such lower rates and fees for the exact same thing such as a 30 year fixed rate loan?
It boils down to one thing, “service”. There is the old saying you get what you pay for and you can’t expect good service at the lowest possible premium, business models conflict. You either have a reasonable rate and fee competitive with the market, with superior service (which is paramount in this type of credit market) or you can be the lowest lender in town and offer lower premium service.
It depends on what you’re looking for at the end of the day. Because interest rates change on a daily basis, even several times per day, most lenders can be pretty competitive with one another, so the real separator becomes who is more responsive? In ever changing interest rate environment the lender that is responsive, clear and transparent is the one most consumers ought to give the most weight to.
*If time is money to you, and your lender takes over 24 business hours to respond to you, ask yourself how much money is this going to cost me ultimately in loan fees and my personal time?
Few things to consider when deciding a lender and interest rate is a concern.
- How long does it take for each lender respond to you?
- How articulate are they in conveying fees in accordance with the loan you’re seeking?
- Have you worked with his previous lender before? If yes, perhaps it makes sense to go back to them if their service standard was enough to re-earn your business?
- Why specifically is your rate lower than everybody else? ? How are you able to offer such lower rates than the other competitors?
- Do you charge a rate lock fee or any other upfront fee other than the appraisal?
- How long is this interest rate lock good for? *Hint if it’s anything shorter than a thirty-day interest-rate lock, they’re intentionally quoting you interest-rate to bait and switch on you
- Does your company actually make the loan or to a farm it out to someone else? If the loan is being funded by another company and your company is the middlemen a.k.a. a broker, they have zero pool with underwriting and do not control any pricing on your loan.
At the end of the day, know that you will sacrifice service in exchange for the lowest rate in town. We successfully operate as a reasonable Santa Rosa mortgage company (a direct lender-yep we make the loan), not the bare lowest rates, but certainly not the highest rate, we can offer you competitive terms and financing on your next home loan. Get started with us today by getting a complementary rate quote and detailed spreadsheet.