SHOPPING RATES

When To Shop—A common mistake people make is calling different lenders for interest rate quotes before they have found the home they wish to purchase or, in the case of a refinance, before they are ready to lock their interest rate. They incorrectly assume that the lender who quotes the best interest rates and costs today will be the one with the best interest rates and costs when they are actually ready to choose their lender.

There are several problems with this approach. If you are just checking rates and not ready to make a decision, unscrupulous lenders will give you an unrealistically low quote just so you will call them back when you are ready to make a decision. Knowing this, reputable lenders will be reluctant to give you a quote at all since they know it will seem high compared to some of the other quotes you are receiving.

A far better approach is to start by developing a relationship with an experienced, reputable lender whom you trust. Work with him or her to determine the best financing solution for your particular needs. If you feel the need to shop in order to confirm that your preferred lender is providing competitive rates and terms, the time to do so is when you are actually ready to commit by locking your interest rate.

How To Choose A Lender:

WHAT TO LOOK FOR IN A LENDER

SHOPPING RATES

• When To Shop

• How To Shop

  Equal Opportunity Lender

© 2006 Lehmann Mortgage