The Mortgage Reports – Shopping For A Home Loan

What's up everybody my name is Joseph Jessie with The Mortgage Reports, today I have a special guest I have Gina Pogol here, Editor for The Mortgage Reports and mortgage expert Here to talk a little bit about mortgages and today we're going to be talking about loan shopping

So a lot of us probably are concerned when it comes time to shop for that loan mainly because we don't want to get an unfair deal right The biggest concern is I'm going to make sure that I'm getting someone trustworthy but I also want to make sure that the rate that I get is actually the rate that I should be getting I don't want to get anything that isn't true So let's talk a little bit about shopping for a mortgage So first why is it so important to shop for a mortgage loan as opposed it is going with the first one you get? Well yeah you can just go to the bank you use and and many people do Some people, about half of people don't shop for mortgages but that can be a really big mistake

A Stanford University study found that people who about four quotes for their home loan for a $200,000 home saved about $2,400 versus people who only got one or two quotes Oh like that, save money I think think of something we'd rather do with $2,400 Oh yeah So what – how do I get a mortgage quote? Well I'm sure I mean I see a lot of ads but I mean I'm sure there's a little bit mortgages boom I get a rate and that's my rate for everybody

Well yeah, I mean first off ads they're not in real time So if you look at a newspaper you're wasting your time You can get quotes by calling lenders, you can get them online, you can go in person down to your bank when you're doing your banking and ask But the thing is you want to get your quotes as close to simultaneously as possible and the reason for that as mortgage rates are tied to bonds and other instruments and so they change up and now just just like things on the stock market Mortgage rates can change more than once a day

So a quote you got on Monday you can't compared to a quote you get on Wednesday it's – it's you're comparing nothing So it's worthless So you want to get them as close to simultaneously as you can And online is by far the easiest way to do that You know even though somewhere to fill out one forum and then your four quotes come in that's as least, that's the least amount of effort on your part and the highest degree of accuracy that you're going to get

So that's the best way to do it in my opinion So now obviously I can go to a few people, get a couple quotes, kind of shop around as you were saying Kind of compare rates and what it is that I qualify for, what do you suggest is kind of the best way to kind of break down the comparison of my rates? Well if you look at your forms and ideally a lender will give you something that it's a government form it's called a loan estimate If you apply for loan they have to give you that by law within three days If you're just shopping they don't have to give you a loan estimate

Many will and that's that's really nice when they do because it gives you some consumer protections that you don't always get with other offers But other ones will give you what they call scenario or a worksheet Bottom line is whatever they call this list of cost, whether it's an underwriting fee, an admin fee or a hamburger It doesn't matter What matters is a bottom-line

What your rate is and how much it's going to cost you to get it And that's kind of what APR is designed to do but APR is really flawed, it's it's a topic that's way too huge to get into here but I don't go just by the APR and you can we can tell you why in another video But what I do to make things really really simple there are two thing two ways to do it you can sit there you can look and see what rates are available, check with your four lenders and say I want to pay 375 percent for 30-year fix loan You do the thing

Then you look and you say okay the lender with the least amount of costs for that rate wins Okay so coming in with the rate and comparing off of that You can flip it and do the opposite as well you can say I want a loan with no lender fees, no points, no nothing What are you gonna give me and then the same thing the quotes come in; best rate wins So what you want to do is pick out a couple of them that come in with competitive rates

Because then you're going to want to interview them and make sure that you're getting a good loan professional to work with and that's the next step