Almost everyone in the market for the best rates knows that it’s important to shop around before making any choices.
For this, you will have to contact a lender who will pull up your credit score and provide you with a quote.
Keeping this in mind, here are 4 things to remember when looking for the best mortgage rates:
#1: Contact a number of financial institutions
It’s a good idea to contact a mix of financial institutions such as a national, regional or community bank, a direct lender or even a credit union. Sometimes any of these financial institutions can offer lower rates as a result of a promotion and which is something that you should take advantage of.
#2: Ask about fees
Most experts recommend that selecting a loan purely on the interest rate is hardly the way to go. Sometimes, an advertised rate that seems low can be offset because of all the fees associated with it. So it should come as no surprise that most mortgages with higher fees usually offer lower interest rates.
#3: Decide whether you would like to pay for points
Points are usually the largest expense on your loan as each point is usually equal to one percent of your loan. This is something that you must discuss with each lender. Again, the decision to pay points or not largely depends on whether you intend to stay at home or you wish to sell your home in a few years.
#4: Calls lenders on the very same day
Mortgage rates continue to fluctuate and which is why it’s a good idea to call most if not all lenders on the very same day in order to compare rates for the best one. In fact, it’s best to call within the same time frame, for that matter.