Many Buyers pay 1-3% too much for their loan in up-front costs, even after "shopping" for lenders. Some choose a lender solely based on which one has the lowest up-front costs, but they end up paying for it by getting an interest rate that is higher than they qualify for. Others unnecessarily pay too much in fees in order to get the lowest interest rate.
Shopping for a loan does not have to be difficult or complicated. The key is to take control of the process, get organized, and make sure you do it right.
Here are some basics on ONE way to shop for a loan. Click each link for more information on each topic:
- Shop the lenders on the same day and at the same time
- Make sure all the lenders have the same facts
- Figure out the TOTAL Cost of the LoanSM
- Don't skip the "shopping" even if you have a "friend" in the business or a "company special"
- Ask for References!
- A few extras
As advocates for the Home BUYER, one of the ways we protect our clients above and beyond what most traditional agents do is by offering to help them evaluate lenders and loan options using our TOTAL Cost of the LoanSM system.
If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!
Call us at (801) 969-8989 or contact us via the link on this page.
Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
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Finally...
It amazes me how many thousands of dollars extra, I see some buyers pay. I tell them to make sure they compare apples to apples, and make sure they get EVERY fee that they'll be paying, up front! But so many of them still get hit with huge fees.
Glad you are doing this post. I it is difficult to undersand the mortage products out there.
Benjamin:
I find this whole series on "Shopping for a Mortgage" very interesting. I have not seen it all broken down like this. It looks like you are doing a great job of representing the interests of buyers in your area.
Isn't it interesting that we will spend hours clipping coupons, reading sales papers, traveling from store to store to save a few dollars, but when we have the opportunity to save thousands, we don't always want to take the time? This is great information. All shoppers should demand the best deal out there.
Truly "shopping" for the best mortgage is a misunderstood process. There are many loan originators and even mortgage brokers who wouldn't know how to do it right themselves...
I do not force clients to shop for the best loan. It is always their choice. But it is a service I offer and will help them with if they want to.
Closing officers are always surprised at just how low a rate we can get a client with no junk fees, AND often, no origination fee, discount points, or Yield Spread Premium.
Ben
Great information and good stuff for anyone shopping a lender and a loan.