Case in Point : In late August, our friends and past clients, Alex and Carissa, asked how they could shop lenders to know they were getting the best rate on their refinance…
Q: We are refi’ing; how can we shop lenders for the best rate and fees?
A: Great question! Many lenders don’t like being “shopped” and will require that you submit a long and tedious loan app before they will provide a quote. In order to skip this time-consuming step, we recommend that you provide only the limited information below. If the lender is unwilling to provide you a quote, move on to another.
(1) State you want a rate sheet at “par” w/ the shortest rate lock period possible
(2) Whether the loan is a purchase, refinance, or cash-out refi
(3) Provide the sales price and down payment (if purchase) or market value and current loan balance (if refi)
(4) Whether the property is a primary residence, vacation home, or investment property
(5) Your estimated credit score
(6) Desired loan product of conventional, FHA, or VA (if veteran)
(7) County and state of the property
Once you’ve selected the most competitive lender, be sure to follow up and ensure you actually qualify for the loan. The above trick is the fastest, best way to ensure you’re getting a good deal at the closing table. Remember, when shopping rates, obtain all lender quotes on the same day due to market volatility.
FINALLY and, most importantly, many times you get what you pay for, so be wary of “value” or “online” lenders as you have no recourse should things go poorly. Getting a Quote? Contact us for referrals to respected, lending professionals, who are very competitive in fees and also deliver best-in-class service.
Contact us anytime you have a real estate-related decision or question – quitclaim deed transfers, renovation ideas, investment property questions, etc.
We’re more than just Realtors, we’re real estate advisors.
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