January 22nd, 2019 1:32 PM by BILL WILBANKS
The 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, fees and lender rebate really are for you. If you are home shopping, you're probably working with a Realtor® to guide you through the buying process. They will help you navigate the myriad details of a real estate purchase and it's very tempting to not shop further for your lender than the mortgage person your Realtor® may suggest you contact. In fact it's expected that only 1 in 5 buyers will shop further for their best mortgage pricing.
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®, and from which all else in the deal will be based. Second are the loan terms you end up with on your financing and that's up to you, assuming you are not fortunate enough to be able to pay cash for it.
Your mortgage deal will have a number of very important elements the cost of which varies with every mortgage company on things like your monthly payment, interest rate, lender fees, closing costs and possibly most important at closing, any lender rebate to your closing costs and prepaids which determines how much money you need to bring to closing.
Yes, get a quote from the person your Realtor® refers you to. They've worked with them in the past and are trying to assist you in this step though you should know you can go where you like. A loan rep may assume since you are being referred, that you won't shop for your best pricing. Unfortunately many buyers don't shop further. No one should assume that because you were referred, you will stop price shopping. Be sure they know they need to offer their best price because you will be shopping. Shopping 101, right? Price tends to sell itself. Simply compare estimates.