Seek Out the BEST Loan, Not Just the Cheapest!
When applying for a mortgage loan, it is important to shop and compare to get the best deal. Talk to at least 3 to 4 different lenders. Never buy from the first person you talk to, unless it is a loan officer you previously worked with, know personally and completely trust (even then you want to be informed on other rates and programs out there to make sure they are competitive). There are thousands of companies out there, all with different products, parameters and processes. When comparing loan programs to each other, don’t compare programs that have different characteristics and terms. If the programs are different, the rate is not necessarily comparable. The only way the rate becomes comparable is when you are comparing two identical programs between two different lenders. To shop and compare correctly, we must know how to put different lenders on the same playing field. We must compare common products and characteristics. To do so, we must apply a simple law of science: to prove the facts, you must test like-scenarios and remove any variables.
Most importantly, find an honest, reputable and competitive mortgage professional and mortgage company to work with. Always start with someone you have worked with in the past (if you were happy with their service) or a referral from someone you know and trust that had a great experience. However, it is critical that you never go with just one company or mortgage professional, no matter how long you have known them or no matter how highly they come referred. We tend to go back to companies we have used in the past simply because we are comfortable with them. Although there is great value in working with someone you know and have had experience with, you still want to be sure they are giving you the best deal possible. It is your money and your mortgage! Therefore, always get other quotes just to keep that person honest and competitive. This creates a great system of accountability for that person and ensures you the best deal for you and your family. If they are looking out for your best interest, they will not be offended by you talking to another company but will take it as an opportunity to prove their worth.