How To Shop For Mortgage Rates
When you are purchasing a new home, if you know how to shop for mortgage rates you can save a lot of money in finance charges over the term of your loan. If you expand your search by using the internet, you will have a large variety of mortgage lenders from which to choose. The mortgage rates offered by each lender can have a wide range. Each will have different requirements, so make sure you understand what is necessary to gain an approval.
- Try your local bank first, to see what mortgage rates they offer their customers. You already have money on deposit with them, so they may give you a better rate than you could get at another bank in your area. You may also be able to get a lower rate if you have your monthly mortgage payment taken directly from your bank account. If you are happy with the loan they offer, fill out an application and submit it for approval.
- Once you know what is offered by your bank, shop for mortgage rates at other institutions in your area. Many banks and credit unions will give you a good mortgage rate, to entice you into moving your bank accounts over to them. If you find a lender with a rate you like, this can also give you some additional leverage with your own bank. Tell your banker that another lender in town can give you a lower rate. They may match it in order to keep your business.
- Shop for mortgage rates online. Search for lenders that offer loans with low mortgage rates. Stay away from the ones that do not look legitimate. Many of the lenders that appear in your search will be located outside of your area. If you find one with a lower mortgage rate than you can find locally, consider applying with them. Make sure to find out all of the fees and closing costs associated with the mortgage loan before you sign on the dotted line.
- Consider using a mortgage broker. If you use a broker, they will shop for mortgage rates for you. Not only does this save you a lot of time, you may get a lower rate, since some mortgage brokers have loan sources nationwide. Make sure to understand all the fees involved if you decide to use a mortgage broker. If the broker costs are too intrusive, go the conventional route and use a lender that you find on your own.