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"
Some clients think they have "shopped" lenders before we meet. They believe they have found the best option and they feel comfortable with the lender for some reason. Other times they don't want to shop for a loan because they have a family friend in the business or they work for a lender and they believe they will get a good deal by working through the person or company they have a relationship with. Often, when we help them shop correctly, we will find an even better option with lower fees AND a lower rate, or the "special deal" they were being offered, miraculously gets better. We have, many times, saved clients thousands of additional dollars when we teach them how to correctly "shop" their loan again.
I encourage clients to compare their options... especially if they have been offered a special deal from a friend or their employer. Many borrowers take these loans at face value, never realizing that they could have saved thousands of dollars, just by doing some shopping around. After all, if the borrower really is getting a good deal, comparison shopping will only confirm that.
A good policy has always been: Trust. But verify.
- 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...
©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" TM - Salt Lake City, UT
Exclusive Buyers Agents (EBA) - All Rights Reserved