SHOPPING RATES—How To Shop

Same day—Since interest rates change daily, you should get all your quotes on the same day. Tell the lenders you speak with that you are going to choose a lender and lock your interest rate by the end of the day. This will ensure you receive realistic quotes.

Same information—Be prepared to provide the following information to each lender:

• Purchase price or, in the case of a refinance, the estimated home value

• Loan amount

• Type of loan program

• Closing date

Insist on a Good Faith Estimate (GFE)—This cannot be emphasized too strongly. A Good Faith Estimate is the only document in which lenders are required by law to disclose all their fees. Do not accept a lender’s “guarantee” of fees. Guarantees can be cleverly worded. If you tell a lender you are prepared to make a decision that day, and yet they are unwilling to provide you with a Good Faith Estimate disclosing all their costs, you should end discussions with that lender.

Give your preferred lender the opportunity to match a lower quote—If you have followed the process recommended on this web site, by the time you get to this point you will have already been working with a reputable lender whom you trust. That individual will have invested several hours of their time in preapproving you for financing, answering your questions and helping you understand and identify the best financing solution for your particular needs. If you receive a lower quote from another lender, you should allow your preferred lender the courtesy of an opportunity to match the lower quote.

BEWARE THE LOW-BALL QUOTE!—There are more than $2 trillion of new home mortgages made in the United States every year. The market is very large and extremely efficient. If you compare quotes as recommended on this web site, you will find that there is, in fact, very little difference between lenders in terms of interest rates and costs. If you receive a quote that is significantly better than others—especially if that quote is from a source other than a well-known, reputable lender—you should be extremely cautious. Unfortunately, bait-and-switch tactics are not uncommon in the home mortgage industry.

How To Choose A Lender:

WHAT TO LOOK FOR IN A LENDER

SHOPPING RATES

• When To Shop

• How To Shop

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