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How to "Shop" Loans and Lenders Part 4 of 7 (TOTAL Cost)
Many Buyers pay 1-3% too much for their loan in up-front costs, even after "shopping" for lenders. Some choose a lender solely based on which one has the lowest up-front costs, but they end up paying for it by getting an interest rate that is higher than they qualify for. Others unnecessarily pay too much in fees in order to get the lowest interest rate.
Shopping for a loan does not have to be difficult or complicated. The key is to take control of the process, get organized, and make sure you do it right.
Here are some basics on ONE way to shop for a loan. Click each link for more information on each topic:
Shop the lenders on the same day and at the same time Make sure all the lenders have the same facts Figure out the TOTAL Cost of the LoanSMAfter many years of evaluating how lenders compete for business, we have found a good way to calculate the TOTAL cost of a loan. We do this by considering how many dollars leave your pocket at the closing table (mostly made up of fees) and how many dollars leave your pocket each month you hold the loan ... more
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