How to "Shop" Loans and Lenders Part 3 of 7 (Same Facts)

By
Real Estate Agent with Homebuyer Representation, Inc. DRE# 5467433

Mortgage MoneyMany 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 in order to make an apples-to-apples comparison

    • These facts include:
    • Same Purchase Price
    • Same Down Payment (And therefore the same Loan Amount)
    • Same Loan Type (FHA, VA, Conventional, Other)
    • Same Loan Term (30 Year, 15 Year, other)
    • Same "Points" (We usually recommend having them all quote you with "No Points")
    • Length of the "Lock" (30-45 days is standard. Sometimes you can get a better rate with an even shorter closing date and lock)
    • Same Credit Score and Debt Ratio Assumptions
    • etc. etc.

    What do you really want out of "shopping" your loan? The lowest rate? The lowest fees? Most Buyers fixate on one of these and when a lender figures out which one, they get that part of the loan as low as possible by moving things elsewhere in the equation.

    Lenders should know that you are shopping for both the lowest rate AND the lowest fees. Neither is most important to you. The total cost of the loan (fees AND rate) will be considered.

    What the Buyer really wants to do is save the most money while they hold the loan. Up front AND over the long haul.

  • Figure out the TOTAL Cost of the LoanSM
  • Don't skip the "shopping" even if you have a "friend" in the business or a "company special"
  • Ask for References!
  • A few extras

As advocates for the Home BUYER, one of the ways we protect our clients above and beyond what most traditional agents do is by offering to help them evaluate lenders and loan options using our TOTAL Cost of the LoanSM system.

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

real estate agents on the buyers side

 

 

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Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Location:
Utah Salt Lake County
Tags:
credit
shopping
loan
references
costs
scores
products
services
interest
fees
analysis
rate
lenders
yield
mortgage
apr
spread
evaluating

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Benjamin Clark

Buyer's Agent - Certified Negotiation Expert
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