Shopping for a mortgage is really easy if you know what to ask for. Most loan officers are trying to sell super high compensation plans. Lenders will try and confuse you saying well they charge more in this section, and more in this section, and we just don’t charge this fee at all. Some lenders say we won’t charge you any fees upfront, they are just built into the interest rate instead where you can’t see it. Some lenders offer super-low mortgage rates, but then there is a ton of fees upfront. Here is how to get past the smokescreen!
Let’s say for a moment you are purchasing a house on 123 Main Street, Las Vegas, NV 89101.
You and your real estate have gotten the offer accepted and you now have a purchase agreement on the home. There are a few variables in a purchase transaction.
1) The title company.
2) The homeowner’s insurance company.
This means each lender may disclose the “estimate” to you differently. When you get to the closing table/the day of closing on your home.
The purchase agreement requires you to use the agreed-upon title company inside of the purchase agreement, the title fees will be 100% the same at the end. You choose the insurance company for your home (usually your car insurance carrier), meaning it will be 100% the same at the end.
The property taxes will be the same as it’s all based on the same property.
The only difference will be the lender’s fees and the lender’s offered interest rate.
Here is how to shop:
- Lender A. Can you please send me a loan estimate or a fees worksheet, or an estimate in a written form in some fashion?
- Lender B. Can you please send me a loan estimate or a fees worksheet, or an estimate in a written form in some fashion?
- Lender C‐Z… Can you please send me a loan estimate or a fees worksheet, or an estimate in a written form in some fashion?
If the answer is no and they can’t send you anything… then you have a salesman… you don’t have a lender.
When you get the estimate, look at the lending fees and the interest rate, they can be named such as:
Admin Fee—Underwritng Fee—Processing Fee—Discount Point—Origination Fee—Origination Point—Loan Fee. (There are many other names) Mortgage Interest Rates change daily, so you want to look at all these estimates within 24 hours of each other as the market will move.
Worst case, you can always send them to us, we will review them and if we can’t match or beat it, we will write you a check for $250.00!