Tips For Locking in the Best Home Mortgage Rate
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 man and he gets the work done ".Translation: "We play golf together and he buys the beer ".Remember, the Realtor won't be paying the bill monthly for another 30 years, you will.
Mortgage Loan Officers that work from a Mike Bergumnetwork of Realtors and Builders don't have to have competitive Home Mortgage Rates because they have a constant stream of "Drones" (people that are referred to them and don't shop) calling them. Shop around, get the best cost Home Mortgage Rate, then if you are inclined, approach the "preferred" Loan Officer you were known and ask him to match the quote.
In the event that you apply for a Home Mortgage by way of a preferred lender without shopping, you'll pay hundreds or even tens of thousands of dollars in additional costs.
Tip #2: Call For Home Mortgage Quotes After 11:00 a.m. Eastern Time
Mortgage Rates change daily and sometimes midday. The previous day's rates typically expire by 8:30 a.m. the following 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 becoming Home Mortgage Rates from the existing day and not a combination of rates from the previous day from some lenders and the existing rates from other lenders, always do your rate shopping after 11:00 a.m. Eastern time.
Get all your quotes after 11:00 a.m. Eastern time.
Sometimes Home Mortgage Rates change midday due to a volatile bond market. When this occurs, some Home Mortgage Lenders will adjust the Discount Points for their rates in accordance with the brand new bond prices and publish new Home Mortgage Rates for that day. Other Lenders may continue steadily to honor their morning rates.
Tip#3: Always Tell The Mortgage Loan Officer You Are Prepared To Apply For A Loan NOW
If you should be purchasing a home, tell the Home Mortgage Loan Officer you're Rate shopping and you have a "ratified contract" to purchase a house. Tell him you want to make a decision and Lock-In an interest rate on that day, but you've to check on additional lenders. If he asks you how his rates compare to others, tell him he's the first person you've called. If you are refinancing, tell the Home Mortgage Loan Officer you're ready to use for a Refinance Home Mortgage today. If that you do not tell him that, he may provide a fake Home Mortgage Rate quote.
Loan Officers know you will probably talk to some other lender with lower Home Mortgage Rates and the only way he can be certain for you yourself to call him back is always to offer you a fake quote that appears to be the lowest. He's expecting you will rate shop for several days and figures you'll call him back in one day or two when he provided a low, bogus rate quote. Also, since Home Mortgage Rates change daily and are subject to improve at any time, he's not worried about giving you a fake quote.