Finding a Mortgage Lender

Posted by  on Apr 16, 2009
If you are looking for a mortgage lender, it can be quite confusing because there are so many different opinions and types of lenders. It therefore becomes important to research mortgage rates and details about lenders in order to make a well educated decision. Lenders know when you're just calling up to get a rate quote. They know you are calling up their competitors.

When you ask for a rate quote for a specific lock-in period paying a specific amount of points, most lenders will give you a reliable quote. At least one loan officer will lie to you. If he doesn't fudge the rate, he doesn't have a shot at your loan because someone else will lie to you. In addition, you can't check anywhere to see if he is telling the truth. You're not likely to immediately fill out an application and lock in the false rate you were quoted. You're going to keep calling around and shopping and maybe tomorrow you'll call back whoever gave you the best quote.

When you are ready to really lock in your interest rate, you will be quoted accurately. Beware that some lenders can jack up your rate at the end of the deal when your options are limited. You probably won't even realize he's doing it because you aren't shopping interest rates anymore.

The best way is to get a referral, then shop other lenders. Do it properly, telling the lenders how much you are willing to pay in points and how long you want to lock in the rate. Tell the lender you have already filled out an application and that you are willing to fax it in, so the rate has to be something he can deliver. One of the best things you can do is to get the best quote under those conditions, and call the lender who was referred to you.

Remember that if you do not have an understanding of how loans are priced and lock-in periods, calling up a lender to find out their interest rate could provide you with mostly useless information. If you call and ask for interest rates, a lender can tell you anything. One lender may quote a "floating" rate and another may quote you a forty-five day lock. Another lender may quote you the rate for two points and another may quote you the rate for one point.

If you call a lender, you should know how many points you want to pay and how long you want to lock in the rate. You do not have to really intend to lock in the rate, but you have to give them all the same parameters so that you get meaningful quotes. You also have to get your quotes all on the same day.

Keep in mind that it is difficult to trust ads. They are trying to sell something to you and therefore, they lie often. An additional thing to watch for with ads is that they are generally placed at least a day in advance. Due to the fact rates change every day, ad quotes are not reliable.


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