Before shopping for a mortgage, there are
several factors that you should take into consideration.
When you first begin shopping, the process seems
relatively simple, just compare rates and pick the
lowest one. But, after several calls to lenders that may
not ask all the qualifying questions, you begin to
realize that comparing lenders may become a difficult
task. In addition, you may be speaking to loan officers
that are not thoroughly trained, and therefore provide
wrong information. So where can you go to shop for the
right mortgage? Do Not worry! Shopping for a loan can be
made simple. Read the article below, use the loan
comparison sheet provided, and soon you will see how
easy it is to get the best deal.
The Right Mortgage For YOU
Before applying for a mortgage, you should decide which
program you would like. We have simplified the process
by offering the top programs. Look through our
Other Resources section for assistance in the
selection of your mortgage. A mortgage is a major
purchase, it is important to know that you have the
right program for you.
Compare Rate to Rate and Fee to Fee
Comparing what different mortgage brokers and lenders
are charging you to get an interest rate is often the
most difficult part of mortgage shopping. First make
sure that you are comparing the interest rates on the
same day. Rates change when the bond market changes,
which occurs daily, if not a couple of times a day.
One of the difficulties in shopping for a mortgage is
that lenders seem to have their own way of expressing
costs. Compare total costs to get the loan. Get to the
bottom line, and look at the GRAND TOTAL SUM of ALL
costs before you compare the interest rates. We believe
that you will find LoanScapes.com has the lowest cost
mortgages anywhere.
For Example: For a loan amount of 100,000 on a 30 year
fixed rate mortgage, 123 bank is offering you a rate of
9.375% with 0 points and 1% origination fee and $450 in
lender fees. XYZ Bank offers you 9.5% on the same loan
with 0 points and no origination fee, and $550 in lender
fees. Both lenders are quoting a zero point loan. Which
lender has the better deal? Lender XYZ probably has the
better deal because paying origination fees is like
paying "points". You should most likely get a .25%
improvement in the rate for a "point". On the same day
ask lender XYZ what it would cost to have 9.375% and
then compare the total cost for both lenders to
LoanScapes,LLC at that exact rate and lock period on our
loan comparison sheet below. It is best to fix all
lenders at one rate and lock period to compare the total
costs to attain this rate and lock period on this
particular day.
What are the Fees that Lenders Charge?
Fees can be broken into one or four categories;
1. Appraisal/ Credit Report Fees or Application Fee
- These are fees paid to companies other than your
lender for services necessary to obtain your loan. In
addition, some lenders may have "application fees". If
this is the case make sure this fee is either credited
to you at closing or is used for your credit and
appraisal report. Our Application Fee is $350, which
pays for your appraisal and credit report.
2. Loan Origination and Points - An origination
fee or point is 1% of your loan amount. By converting
these fees to actual dollars, you can get a truer cost
comparison. Some lenders quote zero point loans but
charge and origination or broker point. LoanScapes.com
does not charge any origination fee. Typically
government loans carry 1point origination and no
discount points. Typically other loans over $100,000 do
not require origination or discount points. Subprime
loans carry an automatic 2 points origination.
3. Lender Charges - (i.e. underwriting,
processing, document preparation, tax service, flood,
etc.) These fees can vary significantly depending on
your lender. Our lender charges are approximately $682,
so there is no guesswork and this covers all lender
charges or additional broker fees.
4. Title Fees - These fees are paid directly to a title
company. These fees include; title insurance, recording
fees, closing fee, survey, termite, and attorney fees if
applicable.
Lastly, watch out for lenders playing the short
lock-in game, where they are quoting you rates on a
15 day lock. If the lock expires prior to you closing on
your mortgage, you lose your lock. At LoanScapes.com, we
quote all of our rates on 30 day locks, to allow you
plenty of time to get your mortgage closed.
All LoanScapes,LLC rate quotes are based on 30 day
locks. All LoanScapes.com programs require you have
the ability to document your income.
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