Do not blindly accept a referral from Realtor or Builder to apply for a Home Mortgage from their preferred lender. They’re going to say several times, “We’re working closely with this guy and he’s getting the job done.” Translation: “Together we play golf and he buys the bottle” Note, you will not get the Realtor to pay the bill every month for the next 30 years. Island Coast Mortgage Brokers
Mortgage Loan Officers working off a Realtors and Builders referral network do not need to have competitive Home Mortgage Rates because they have a steady stream of “Drones” (people who are referred to and don’t shop) calling them out. Look around, get Home Mortgage Rate at the lowest cost, then if you’re inclined, approach the “preferred” Loan Officer you’ve been assigned to and ask him to fit the offer.
When you apply for a Home Mortgage without shopping through a chosen lender, you will be charging hundreds or even thousands of dollars in additional costs.
Tip #2: Call for Home Hypothecary Quotes Until 11:00. Eastern Time Mortgage Rates adjust every day, even even at times. The levels of the previous day typically run out by 8:30 a.m. The following morning. Home Mortgage Rates are usually released by 11:00 a.m. every day. Time Central. This fluctuates from lender to lender. And insure that you get home mortgage rates from the actual day and not a combination of the previous day rates from some lenders and the current rates from other lenders, always do your shopping after 11:00 a.m. Time Central.
Get after 11:00 a.m. all your quotes Time Central.
Often due to a competitive bond market, home mortgage rates change at midday. When this occurs, some Home Mortgage Lenders will change their Discount Points according to the new bond rates and publish new Home Mortgage Rates for that day. Other lenders could keep honoring their morning rates.
Tip#3: Always inform The Mortgage Loan Officer You’re Ready To Apply For A Loan NOW If you’re buying a home, tell the Home Mortgage Loan Officer that you’re Rate Shopping and that you’ve got a “ratified deal” to buy a house. Tell him that you intend to make a decision on that day and lock-in a pace, but you need to test out a few other lenders. If he is telling you how his rates compare with others, tell him that he is the first person you’ve called. If you are refinancing, inform the Home Mortgage Loan Officer today that you are ready to apply for a Home Mortgage Refinance. If you don’t tell him that, he could provide a fake quote on the Home Mortgage Price.
Loan officers know that you’re actually going to talk to another lender with lower home mortgage rates and the only way he’s sure you can call him back is to give you a fake quote that seems to be the lowest. He wants you to rate shop for a couple of days, and thinks you’ll call him back in a day or two because he got a low, fake estimate. Even, because Home Mortgage Rates change every day and are subject to change at any time, he doesn’t care to give you a fake quote.
If you don’t know which quotes are true and which are part of a bait and switch scheme, how will you compare quotes? The only way to get real quotes is to box in the Home Mortgage Loan Officers by making them think you’re instantly ready to lock-in a Home Mortgage Rate.
Tip#4: Ask for the Total Points And Total Fees When contacting a mortgage lender, ask for the “Absolute Points” (Discount Points, Loan Origination Fee, Broker Points) for each Home Mortgage Rate. Many borrowers will only quote the Discount Points and leave out the Loan Origination Charge on purpose. Once you apply for a Home Mortgage you will not find out about the 1.00 Point Loan Origination Charge. By that point, you’ll embrace the Loan Officer estimates just because he’s had your application and pulled your credit report. Moreover, Mortgage Brokers sometimes forget listing their Broker Fee.
Some lenders do not charge a fee for the Loan Origination.
When the Total Points are quoted, specifically ask them if there is paying an extra Loan Origination Fee or Broker Charge. When you talk to a Home Mortgage Loan Officer you really have to pin this down.
Sometimes, ask for a list of ALL other fees that will appear on the Good Faith Estimate you’ll pay to the Lender or Broker for. Make sure their credit report and assessment fees are included. Many borrowers are paying one lump sum charge, which includes the Credit Report and Appraisal Fees, while others are charging each fee. Keep it simple, and ask for all fees, including credit report costs and fees for assessment.
Title Company, Attorney Fees or Escrows don’t get confused. These are calculated by a lender on your Good Faith Calculation, but these fees are not related to costs associated with an offer for a mortgage rate. The amount required for your escrow account won’t change from lender to lender, and the lender will not charge Title Company and Attorney Fees. Don’t bring them into your analogy.
Tip#5: Always check the Rate Lock Period when Asking for a Rate Quote If you are purchasing a home and you need 60 days to close, make sure that you explicitly request a 60 Day Lock Mortgage quote. Most Home Mortgage Loan Officers are going to quote rates of 15 Day or 30 Day Lock periods and for longer periods the Discount Points for shorter lock periods are less than the rate locks. Quoting a Home Mortgage Rate with a lock period of 15 Days obviously gives an unfair advantage to that Loan officer. It’s also a waste of your time because if you can’t settle on your loan within 15 days the quote is not true. If you are purchasing a home, always mention a 60 Day Lock-In. If you are refinancing, apply for 45 Days, but if you are very vigilant and contact your Home Mortgage Loan Officer twice a week for a status of your submission, you may be able to get it done within 30 days.