Shopping for the best rate and term

OK, so you're ready to move forward on getting finanacing for a purchase. Great! And you may even have a great finance specialist in mind to help you with your mortgage loan. Even better! But, do you know whether you're getting the best rate and term on the market? How would you know if you only receive information from one person or company?

Best thing to do is get another opinion or two. Comparison shop. Don't worry about hurting anyone's feelings. This is about getting you the best rate and term on the market, which can save you thousands of dollars over the life of your loan. There's always the alternative of not knowing whether your contact could be costing you or saving you more over the competition. How will you sleep then?!

If you are going to comparison shop, you do have to keep in mind that your credit score will likely have to be pulled. If your credit is pulled numerous times, this could reduce your score. The secret is to do your shopping within the same week. Within that one week timeframe the credit bureaus will see you are dillgently shopping around and this will not injure your score in the same way it would if you were to have your credit pulled over a several week time period.

Always get a good faith estimate so you can do side-by-side comparisons. If a mortgage professional is unable to provide you with a good faith estimate, this is a big red flag and you should respectfully thank them for their time and move on. These folks are required by law to furnish you an estimate in good faith.

Also, be sure you are comparing similar loan products. An adjustable rate mortage is going to differ in rate than a fixed rate mortage. So be sure you're comparing apples to apples.

Though this may cost you a little more time up front, this practice will likely save you thousands of dollars. If you do your homework and shop around, you'll be satisfied with the financing package you have going into your next deal so you can refocus your attention on finding the right property!

If you are interested in referrals to qualified mortgage professionals, I would be more than happy to refer. If you have any related stories to share about mortgage/lending experiences, feel free to comment.

Your success is my business,

Brad