🏡 TIMELY HOMEBUYER TIP: Compare the Whole Loan—Not Just the Rate

Debe the interest rate can be very deceiving, a borrower needs to take everything you mentioned into consideration before making a decision.

Good afternoon Debe,

With interest rates ticking up each day a buyer waits the higher it is! Comparing rates is important but compare lenders and look at the whole picture. Which one is also going to get you across the finish line!

Great advice Debe - best buyers shop around for best TERMS AND rates!

Thanks for sharing!

Sincerely,

Grace

You're on a role!   So many buyers ask "What's the rate?" but there's a lot more to it than that. Your list is something many never consider when they sit down to decide if they want to buy and what they can afford.

Debe, buyers should review the entire loan agreement to know exactly how much they are paying.

Debe, your focus on the whole loan is essential because identical rates can produce very different borrowing costs. Origination charges, discount points, APR, mortgage insurance, lock terms, and prepayment conditions determine whether an attractive quote still fits the buyer’s plans. Comparing a written loan estimate instead of a headline rate turns the conversation from shopping for a number to evaluating the complete obligation.

Debe Maxwell, CRS good morning, Debe... this is such important advice. I can't tell you how often I'm discussing this with buyers and when I start asking questions I usually get a blank look from them. 

This is good information to share with prospective mortgage borrowers.

Have a productive week.

Debe, this is an important decision to make - comparing at least two lender offers, not only on the rate but the other factors, too - points, fees, lender credits etc. I think I will create a spreadsheet and will offer it to Buyers as a starting point - they can add or subtract what is important to them. Credit scores do not go down if Buyers check their options with lenders within a 30-day window from the first quote (or at least that was the rule until the last time I checked).

Debe Maxwell, CRS I never advise clients to shop rates as it is very deceiving. Service is what is important. Many times they give you a rate you may like by adding fees you are not aware of.

I don’t know all the ins and outs, but I’m getting there and thank you for the clarity and everything .

It is really important to be a virology possibly can be even though we want to just scroll through and hope we get it right.