July 25th, 2013 5:07 PM by BILL WILBANKS
There are many competent mortgage companies in the market today to choose from. The main difference between most mortgage providers comes down to your comfort level with the loan rep you choose to work with and how competitive their rates and fees really are for you. If you are home shopping or will be, you should be working with a realtor to guide you through what may seem like a maze of details to the average buyer out there who doesn't deal with the myriad details of a real estate purchase everyday.
After 3 decades in the mortgage business I'd ask you to do yourself a huge favor. I know it is very tempting to just jump into working with the mortgage person your Realtor® will probably suggest you contact and I love referrals myself, I ask you to shop around. Why? Well for a number of reasons.
There are two main financial pieces to a purchase transaction. First, the sales price you negotiate. That one's up to you and your Realtor® to make your best offering price, and from which all else in the deal will be based. Second are loan terms you end up with on the required financing, assuming you are not fortunate enough to be able to pay cash for it.
Your mortgage amount will have a number of important elements the cost of which varies with every mortgage company today on things like your monthly payment, rate of interest and therefore how much interest you'll pay until you sell or pay it off and the closing costs at the rate you close at. I recommend that you get a quote from the person your Realtor® refers you to since they have worked with them at sometime in the past and are trying to assist you even in this step though you should know you can go where you like. They may not be as low as they can be if they assume you are being referred and will just jump on it to get it moving along as many buyers do. But don't let them assume that since you were referred, you may have already therefore taken yourself out of the shopping loop, that they don't have to offer their best price and you end up paying more because of it. That's sales 101 for many. You can take your financing anywhere...why not get your best price in the mix? Right? It may be them...but verify.
Ok, we now believe you want to get your best deal all the way through the transaction. After all you'll be bringing your hard earned money to the closing table and be living with the cost of the monthly payments, likely for years to come. Even a rate that is only 0.125% (1/8) to 0.25% (1/4) higher is a very large expense to you over the life of the mortgage. Unless you get your best deal before you close you may end up paying far more than you should because you simply failed to get a second opinion. I truly believe I am your pricing solution daily and I know I provide a personal service second to none. So please, don't just blindly go with the first person you are referred to. Make us earn your business!
Do just a little homework and you may find that you saved yourself some serious money. It's your money at the end of day. Let me help you keep the most you can.
Bill Wilbanks