How to Utilize Shoprate.com in Shopping for Your Best Mortgage Deal
By: Liz Freeman
February 11, 2008
When shopping for a mortgage, the most important thing to attempt to do is compare "apples to apples". Do some basic homework, check with your State Banking department to find out the reliability of the lenders with whom you have interest. Often times the State Banking Department will have on file any consumer complaints and whether or not they were handled by the lending institution in a timely and professional manner. Do your own 'due diligence' by typing the name of the mortgage lender into a search engine, along with the words "problem" or "scam" or "bad experience". This should exhibit any negative postings about them. If there are a lot, or the allegations look substantial, avoid them.
Get a Good Faith Estimate from a minimum of three lenders. You typically comparison shop in everything you do - buying groceries, gas, a new car, etc. Comparing the fine print can you be sure of getting the lowest rate. Using Shoprate.com you can make side-by-side comparisons of the different lenders, helping you through this process. Take advantage of the e-mail feature which will allow you to receive e-mails from multiple lenders so you can start your comparison. Shoprate.com lenders work hard to attract customers by negotiating lower rates with lenders, so you often will find better deals through Shoprate.com lenders than through lenders who spend extravagant advertising dollars elsewhere.
As you shop for the lowest rate, don't ignore the total cost (i.e. fees) associated with the particular loan offer. Don't necessarily select a mortgage institution based upon rate alone, get the good faith estimate to compare each lender based on rate and fees to give you the best and most accurate idea of the overall, long term cost. Sometimes an unbelievable rate comes with very high fees. Look at the total package before you make any decisions.
Before you fill out mortgage applications, take whatever steps you can to improve your credit. Pay off old loans, and once they are paid off, ask your creditors to remove negative entries from your credit report.
And feel free to let the lenders with whom you are dealing with know that you are an educated consumer and they are just one of 3 or 4 lenders you are currently shopping in order to get the best deal. The mortgage industry is a very competitive by nature. Lenders might have some "wiggle room? to put together an even better deal.
Which is the best mortgage for you? It's the one that the best deal for you, according to your circumstances. It's a serious commitment. It can radically affect your future. It is worth spending time to do a little research, and get it right. Even if you're happy with your local hometown bank, it may not be the best place to get the best mortgage for you. Shop around a bit - it is probably your largest financial commitment so you owe it to yourself to be as well educated as possible in order to get the best type of mortgage at the best rate with the lowest fees as possible. Take the time, use the learning center Shoprate.com has available to better educate yourself on all of the various loan programs available to you.
When all is said and done, your main residence or a real estate venture is a good that serves a purpose; shelter. Value appreciation is secondary. Don't blight your life to service a fantasy. Live for more than paying off mortgage. Use the energy of your life to serve a nobler vision. Define exactly what for, or if, you need the mortgage. Then go for a walk, and think about the best way to get it.
