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So you want to know what the best rates out there are? Well there are many different variables that can affect the actual mortgage rate that you qualify for. You can shop around for mortgage rates and call hundreds of different lenders to find the best rates available but in the end it may not mean anything to you. Your credit score can affect your final interest rate, your loan purpose, property type, occupancy type, Loan to Value, type of loan, and many other factors may affect what the final rate you qualify for may be. Therefore, just because one lender is advertising the lowest rates does not mean that you will qualify for that rate. There may be other lenders out there who had a higher rate than the lowest you found but you still may have ended up with a lower rate with them after all is said and done and your final rate is calculated. It is wise to shop around with a few different lenders to find who will provide the best deal for you. However, in the end most lenders will be very close and it should come down to who you feel the most comfortable working with and who you feel you can trust the most. Contact me for a free rate quote at 888-418-4467 or email me at dave@gofirstsecurity.com.
Do not ever fall for the oldest trick in the book, "The Ole Bait and Switch." If
something sounds to good to be true and someone is quoting you the best mortgage
rate by far, it probably is too good to be true. Do you know how many people
fall victim to this practice every year? The numbers are probably astounding.
Once you get to closing very few of these consumers will ever back out of the
transaction, especially on a purchase loan because there are way too many other
variables involved, like being out of your old house, moving truck or moving
company, possible loss of earnest money, possible loss of buying this home,
having to go through the whole loan process again, etc... Therefore, this is
nothing wrong with shopping for the best rate, but be hesitant if someone boasts
a much better rate than everyone else because it probably does not exist.
Be careful when focusing on getting the lowest rate out there. Sometimes a program with the lowest rate may not achieve the goals of your overall financial plan. Instead ask yourself "How long do I need to borrow the money?" What age will I decide to retire at? Your mortgage professional can conduct a thorough interview to match the right program for your needs. In addition to shopping for the best mortgage rates, you also need to review a Good Faith Estimate (GFE), to understand the other fees you may be charged. Some mortgage lenders may quote you a better interest rate, but will charge you percentage points to "buy down" the interest rate to that level. Incidentally, if you plan on being in your home for a long time, this may actually be a good idea. Consult your mortgage loan specialist on this topic for more information. When comparing interest rates, compare the APR rate. The loan with the lower APR rate is the more beneficial loan for you long-term. Check First Security Financial Services, Inc. interest rates, then request a personalized customized mortgage rate for your situation to see how your offers compare. If you think you may have less then perfect credit always check with a mortgage broker who can originate a FHA loan for you. FHA will help borrowers with less then perfect credit secure the best mortgage rates. FHA is backed by the federal government and does not grant approvals based solely on credit scores but rather on overall credit profile! Competitive lenders can almost always offer nearly identical rates. Going with the lender that merely quotes the lowest rate is inherently flawed because not all rates come at the same price. Lenders may quote you a low rate and fail to mention the high costs associated with it. Additionally, you need to watch out for those that practice "bait and switch" tactics. Working with an honest and reputable loan officer will help you get the best mortgage rate without any surprises. Shopping for the best mortgage rate is natural in a market where rates are going down, because it often meant that the best rate meant the lowest payment. However in today's market it is much more important to identify what you need from a home loan, and if your next refinance will help you achieve your unique individual financial goals. For example, many people today are benefiting the most from lower payment options available on their new mortgages. Others want a mortgage strategy which allows them to pay off their house more quickly. No matter what your goals, it's important to recognize that there is much, much more to mortgages than rate. The biggest mistake mortgage shoppers make is that they don't understand that mortgage rates are a financial instrument similar to stocks, bonds, and mutual funds. Financial instruments are tied to Wall Street and therefore fluctuate in price daily. Mortgage rates differ day to day. To get the best rate work with a mortgage professional who understands what causes mortgage rates to change.
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Information listed above is to be used for educational purposes only and is not guaranteed
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