Tip #1: Shop For Home Mortgage Rates
Don’t blindly accept a Realtor or Builder referral to apply for a Home Mortgage through their preferred lender. Many times they will say, “We work closely with this guy, and he gets the job done.” Remember, the Realtor won’t be paying the bill each month for the next 30 years; you will.
So make sure you shop around, get the lowest cost , then if you are inclined, approach the “preferred” Loan Officer you were referred to and ask him to match the quote. If you apply for a Home Mortgage through a preferred lender without shopping, you will pay hundreds or even thousands of bucks just in additional costs.
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Tip #2: Call For Home Mortgage Quotes After 11:00 a.m. Eastern Time
Mortgage Rates change each day and sometimes midday. The previous day’s rates typically expire by 8:30 a.m. the next morning. Generally, Home Mortgage Rates are published each day by 11:00 a.m. Eastern time. This varies from lender to lender. To ensure you are getting Home Mortgage Rates from the current day and not a mixture of rates from the previous day from some lenders and the current rates from other lenders, always do your rate shopping after 11:00 a.m. Eastern time.
Tip#3: Always Tell The Mortgage Loan Officer You Are Prepared To Apply For A Loan NOW
Tell the Home Mortgage Loan Officer you have been rate shopping, and you have a “ratified contract” to purchase a house if you are buying a home. Tell him you intend to make a decision and Lock-In a rate on that day itself, but you have to check a few other lenders. If he asks you how his rates compare to the others, tell him he’s the first person you’ve called. If you are refinancing, tell the Home Mortgage Loan Officer you can apply for a Refinance Home Mortgage today. If you don’t tell him that, he may provide a fake Home Mortgage Rate quote.
Tip#4: Ask For Total Points And Total Fees
When you call a Mortgage Lender, ask for the “Total Points” (Discount Points, Loan Origination Fee, Broker Points) for each Home Mortgage Rate. Some lenders will only quote the Discount Points and deliberately leave out the Loan Origination Fee. You won’t find out about the 1.00 Point Loan Origination Fee until you apply for the Home Mortgage. The Loan Officer figures you will accept it by that time because he’s got your application and pulled your credit report. In addition, Mortgage Brokers often neglect to mention their Broker Fees. Some lenders do not charge a Loan Origination Fee. When you are quoted the Total Points, specifically ask them if there is an additional Loan Origination Fee or Broker Fee being charged. You truly have to nail this down when you talk to a Home Mortgage Loan Officer.
Tip#5: Always Confirm The Rate Lock Period When Asking For A Rate Quote
If you are buying a home and need 60 days to close, make sure you specifically request Mortgage Rate quotes with a 60 Day Lock period. Some Home Mortgage Loan Officers will quote rates with 15 Day or 30 Day Lock periods because the Discount Points for shorter lock periods are less than rate locks for longer periods. Quoting a Home Mortgage Rate with a 15 Day lock period obviously gives that Loan Officer an unfair edge. It is also a waste of your time because the quote isn’t real if you can’t settle on your loan within 15 days. Always specify a 60 Day Lock-In if you are buying a home. Ask for 45 Days if you are refinancing, but you may be able to get it done within 30 days if you are very diligent and call your Home Mortgage Loan Officer twice a week for a status of your application. If your rate lock expires, the lender will re-lock you at the higher of the original rate or the current rate when you decide to re-lock. That’s a LOSE/LOSE situation for you. Never let your rate lock expire.
Your home is going to be your zone of happiness. Hence, make sure you have given a good thought to everything related to it, starting from your home mortgage rate.