What is your interest rate?

Mortgage and Lending NMLS#1089067

What is your interest rate? On a popular website for shopping rates, this is the number one recommended question that a consumer should ask a lender when shopping for a mortgage (home loan). The website has over 13 million monthly visitors. It makes sense; agree on price first, right? Not so much, the mortgage industry is unique.


When buying a car, they don't check your credit or bank account before they quote you a price, so why is the mortgage industry different? The difference is that each home loan is built to order. For example, at a car dealership, you can buy any car on the lot with any feature. Features might include color, AC, 2 door, special trim packages, etc. Have you ever been told by a car salesperson, "you need a credit score of 740+ to buy a red car"? Probably not, because a loan is priced according to certain features.


When shopping for the rate for a home loan be armed with your personal features or characteristics of your loan like:

1. Credit Score

2. Loan to Value (LTV)

3. Loan Type (purchase, refinance, or cash out)

4. Property Type

5. Escrow


This is not an exhaustive list, but it can get you closer to getting an accurately priced interest rate you would truly get. Now, if this seems overwhelming, the good news is your loan representative with a few short questions should be able to quote you a price. Another one of my favorite analogies is that a professional doctor would not write you a prescription until they have given you a checkup. Hence, a professional loan representative should not quote an interest rate until they have gathered your loan features. 


If you are buying a home seek a licensed residential mortgage loan originator who you trust will review your complete financial situation and give you a quote without any games.


In Texas, contact Jimmy Smith for questions or a no obligation loan consultation.


 Jimmy Smith, NMLS#1089067, (214) 872-9091 Ofc