Getting a mortgage is a little like getting married: it is a highly intrusive dive into the financials of your life, and you sign a 30-year commitment. Who you choose to trust with the details is very important and goes way beyond an interest rate? But let’s talk about that interest rate: this little number is going to determine how much you pay the bank for the privilege of borrowing money. A 1% difference in an interest rate can mean $100’s of dollars difference in a monthly payment. However, the truth is that there is going to be very little difference between the rates of reputable lenders because they are all getting their money from the same source AND intend to make money on those loans by selling them again on what is called the “secondary market.” Because of this the interest rate on your loan is not an arbitrary or flexible number. For example, if one mortgage broker tells you they can get you a 30-year-fixed mortgage rate of 3.5% and everyone else is at 4.65% – the mortgage broker who offered you the 3.5% has hidden fees somewhere or is in some way going to recoup the money so that they are really making 4.65% with your loan. Confusing? Yes. The other “catch” is that a Broker really can’t tell you over the phone what YOUR rate will be. Why? Because they don’t know YOU. One of the biggest factors in establishing YOUR rate is YOUR credit score. The best way to choose a good loan officer is based on a combination of criteria: interest rates, in-house underwriting, skilled loan officers, and processes in place to serve you and close your loan on time on terms to which you agreed. How do you know which mortgage broker will do this? Ask a trusted Realtor: we do these 100 times a year and know the best mortgage brokers and the ones to stay away from (even if their rates are lower!)
The Kathy Chiero Group of Keller Williams Greater Cleveland is a team of great Realtors ready to go to work for you. Find us a www.OurOhioHome.com.