Why You Re Probably Not Getting The Best Mortgage Rate Quote

Why you're probably not getting the​ best mortgage rate quote?
A loan is​ basically a​ product and like all products,​ its sales pitches can be exaggerated .​
The end result is​ that you​ end up with a​ loan that may not suit your needs at​ all .​
When shopping around for the​ best mortgage rate that is​ most suitable for you,​ one needs to​ be highly discerning with exactly what is​ being offered.
Short-Term Adjustable Rate
Many consumers make the​ common mistake of​ choosing a​ one-year adjustable rate mortgage due to​ the​ deceptively low rate being advertised .​
Deceptive,​ because,​ in​ the​ very next year,​ the​ rate shoots up .​
It is​ most important that you​ keep in​ mind that it​ is​ not in​ the​ best interests of​ lenders to​ offer you​ a​ loan with the​ lowest possible interest rate .​
Typically they would prefer you​ to​ opt for the​ highest rate you​ could possibly afford .​
Doing so will ensure that in​ addition to​ their regular commission,​ mostly one percent of​ the​ loan amount,​ an​ overage of​ an​ extra one or​ two percent is​ earned for selling you​ a​ loan priced higher than the​ most favorable deal for you​ .​
To avoid this situation,​ insist on​ the​ daily rate card from your loan officer that lists the​ lowest rates of​ all his products.
Regulation Offers Some Protection
the​ Real Estate Settlement Procedures Act (Respa) lays down that lenders must give an​ accurate estimate of​ closing costs at​ the​ time of​ submitting your application .​
Extra charges are in​ violation of​ the​ law .​
Nevertheless many banks often try to​ slip them in​ .​
Insist on​ a​ detailed list of​ closing costs .​
If you​ find any suspicious or​ unnecessary charges,​ you​ have the​ right to​ ask your loan officer for an​ explanation.
While it​ may be advisable to​ seek recommendations for mortgage lenders,​ you​ need to​ be careful if​ the​ advice comes from a​ real estate agent .​
With estate agents,​ it​ is​ more likely that instead of​ referring you​ to​ the​ best deal possible,​ they send you​ to​ the​ lenders who pay them a​ commission for doing so .​
Mortgage brokers will often mislead you​ with pre approvals .​
They lead you​ to​ believe that a​ pre approval practically guarantees you​ the​ mortgage .​
However,​ at​ the​ actual time of​ getting approved for a​ mortgage,​ these pre-approvals are of​ no value and may as​ well be wastebasket approvals.
The Government has made efforts to​ ensure protection for the​ consumers with government mandated disclosure forms .​
However the​ miniscule type combined with complex financial figures can be difficult to​ read or​ comprehend easily .​
Even worse,​ it​ can be use to​ conceal the​ truth just as​ it​ can reveal it .​
Overall,​ make sure that when you​ are selecting your quotes,​ you​ keep in​ mind that opting for what appears to​ be the​ cheapest quote initially,​ or​ depending completely on​ the​ recommendations of​ the​ lender are not good strategies with seeking out the​ right mortgage for you.
Why You Re Probably Not Getting The Best Mortgage Rate Quote Why You Re Probably Not Getting The Best Mortgage Rate Quote Reviewed by Henda Yesti on July 05, 2018 Rating: 5

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