Most people wouldn’t buy a new computer without shopping around first. They’d research different models and manufacturers, try out a few options in store, and compare pricing online and in their local electronics shops—all to ensure they get the absolute best product at the best price.
So why not do the same with your mortgage rates?
After all, computers only cost a few hundred dollars. Homes? Those are hundreds of thousands, and for many, they represent a decades-long commitment that lasts much longer than even the best of laptops.
The truth is, you can use many of the same shopping tactics when applying for your mortgage. You don’t have to go with the first lender you encounter, and you can (and should) shop around before making a commitment.
How to Get the Best Mortgage Rates
Every lender offers different products, different rates and different levels of service. It’s important to do your research and make sure you’re getting the best possible fit for your long-term financial goals and needs.
Here are some tips to help:
Shortlist a few lenders.
Start with one you know and trust, and contact a loan officer to see what products fit your needs and what rates you’re looking at. Then, loop in a few other lenders to see how your rates stack up. Consider adding in a mix of different lender types—credit unions, national banks, and local banks. Be sure to contact them all on the same day and give each one the same data. You want the rates to be based on the same exact info.
Ask about fees.
One of the big areas where lenders differ is their fees. Some charge much more in origination fees than others, which can rack up your costs come closing day. Make sure to ask each lender you consider about their specific fees and what you can expect to pay upon closing—in addition to your down payment.
Create a chart.
As you gather information, create a spreadsheet or chart to track your info. Include the lender name, the rate, the APR, fees, the monthly payment, and other details they give you. Make sure to keep notes on their customer service, too. Did they call you back right away? Did they route you through a tedious call center? Did they make you feel comfortable and at ease? These details can make a difference—especially if two lenders are offering around the same rate.
Get Started Today
If you’re looking to see what you’d qualify for in terms of mortgage rates today, get in touch with Embrace Home Loans. We’ll give you all the info you need to evaluate your home buying potential. You can also calculate home loan payments using our online Mortgage Calculator — it will help you figure out what your home mortgage payment might look like as you adjust different factors.