Comparison Shop To Get The Best Mortgage Rate

What is the best way to make sure you get the best mortgage rate? Compare several different offers. If you just spent 40 minutes talking to someone about your scenario, learning about their company and their process, and getting a detailed quote for what they can offer it might be overwhelming to think of repeating that process with several other originators. Start by checking out the advertised rates of a few other banks and lenders in the rate tables on a site such as ForTheBestRate.com. (There are others out there, but of course as the owners of ForTheBestRate.com we'd love it if you started your search there! We also think it offers a great representation of what the mortgage marketplace has to offer on a given day.)

When looking at advertised rates if you see companies with rates significantly higher than your existing offer you probably don't need to contact them. If you find lower advertised rates it might make sense to give those banks and lenders a call to have them quote your scenario. Be sure to look at the advertised rates for the same program you had quoted, and check the assumptions made when listing the rates. It would be near impossible to list a rate for every scenario out that could come up so rates are displayed for the most common situation. This generally means things like a 20% down payment or equity in the property, owner occupied, for borrowers with good credit. If your loan falls outside of these guidelines mention that up front when requesting pricing as what you saw advertised may not apply.

Request a Good Faith Estimate (GFE) from the three or four people who quoted you the best pricing. Always consider up front fees and not just the rate when comparing offers. Try to get the GFEs within a few hours of each other and ask if pricing has changed recently. That will help you compare apples to apples, as mortgage rates can change several times within one day.

Before making your final decision take into account how you feel about the mortgage professional you will be working with. You should have confidence not just in their price, but also that they will work hard for you, communicate thoroughly, and get the loan closed in time. Remember that you are not guaranteed the rate you were quoted until you have it "locked in". Always ask for the lock confirmation in writing so there is no confusion.