Everyday there is a new advertisement about “low rates”, on the radio, on billboards, in the media, etc. Yes rates are at record lows, and yes this puts many in a good position to purchase and/or refinance their existing home. The low rates are definitely helping the housing market, more people are feeling more confident about entering or “re” entering the real estate market. The only bad thing about “low rates” is it causes “Rate Shopping”.
There is nothing wrong with looking around for a good rate but I feel you should know that it shouldn’t stop there. There is much more to getting a mortgage loan than just the rate. I really can’t emphasize this enough.
There are more factors to consider rather than just hanging on to “who can get me the best rate”. Haven’t you heard “you get what you paid for”. Well sometimes this can be the case when you are just rate shopping. Just because you chose a lender or broker with the lowest rate they offered over the phone doesn’t guarantee you got the best deal and/or the best service.
When looking for a lender you not only want to know that you are getting a good rate, but most importantly are they going to be there to help guide you through the mortgage process, answer all your questions, offer the BEST options for your personal situation. Maybe a Conventional 30 yr fixed rate was the lowest BUT really you would have been better in a 15 yr or maybe even a 3/1 Arm, how would you know if you don’t ask, or if they don’t ask you? And how can they ask you if you lead the conversation with “what are your rates?” and most lenders will provide you with an answer BUT will also try and get more information from you and if you are unwilling to answer and shut the conversation off because they didn’t hit your magic number then you could be setting yourself up for cutting your options short. Maybe you didn’t get the best deal after all.
For example a previous client who was shopping for the lowest rate thought they were getting a better deal elsewhere, but when it came down to it, all things equal, what we recommended for them was actually $55 cheaper per month! This all could have been avoided had they not just been shopping for rate, but also seeking service.
The questions you should be asking is “how long have you been in the business”, “do you have letters of reference or can I contact any past clients?”, “what loan options do you suggest for my situation?”. Any of these are better than “what are your rates!”
Please give us a call or contact us and see how we could help you!
Something to chew on~
Ray Williams
Branch Manager
Summit Mortgage Corporation
303-779-0591 ext. 101
