• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Why Should I Work With a Lender Whose Interest Rate Is Higher?

April 20, 2013 by Scott Sheldon

Share on Facebook Share on Twitter Share on LinkedIn Share on Email

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.

Related Mortgage Advice from Scott Sheldon

  • Why APR is Higher Than The Interest Rate

    The annual percentage rate is always higher than the actual interest rate, because the annual…

  • Why Ability To Qualify Supersedes Rate

    Consumers shopping for a mortgage typically concentrate on attaining lowest possible interest rate. Rates have…

  • Why does my lender keep sending me loan disclosures?

    Mortgage lenders are under incredibly tight protection laws from the Consumer Financial Protection Bureau, CFPB. …

  • Why Is My Mortgage Rate On My New Loan So High?

    In short risk-based pricing, the higher the risk the lender incurs the higher the mortgage…

Filed Under: Purchase Mortgage Loans Questions and Answers, Refinance Loans Questions and Answers

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window