Shopping for a house usually involves taking out a mortgage. While shopping for the lowest interest rate may seem like the smartest move, you want to be proceed with caution as you rate shop. Unfortunately, not all lenders and mortgage brokers have your best interest at heart. You may end up paying more at a low interest rate than you would have with a high interest rate! So unfortunately, you can’t always assume the lowest interest rate is the best choice.
There are ways to ensure you are getting the best deal. First of all, when rate shopping, inquire about fees and fines. This is where many companies get you. They lock you in with a low interest rate, but the fine print lists a bunch of other figures you’re responsible for paying for as well. Asking a lot of questions is the best way to get to the bottom of what you actually owe. When you do find a good deal, jump on it! There’s no guarantee it will still be there while you continue to rate shop!
Another factor to keep in mind when you rate shop is the right lender can make all the difference in the world. A low interest rate with a second rate company is ultimately not in your best interest. Forbes.com advises to ignore online reviews and focus more on local, straightforward lenders. “Avoid the person who sounds so nice on the phone, offers a too-good-to-be-true deal, charges a $350-700 application fee and never calls back…It also helps if the banker is close to home. A local lender will understand the property value and state or county-specific underwriting guidelines. A local lender will also have better relationships with the realty and title companies to speed the documentation process.”
First Lenders seeks to be the kind of company you can depend on. Call us today!