You’ve probably heard how important it is to compare mortgage offers or quotes from multiple lenders. But how do you actually do it? What steps are involved, and what information do you need to obtain from each lender? This tutorial answers these and related questions about mortgage comparison shopping.
How to Compare Mortgage Offers: 4 Steps to Success
This guide is broken down into four steps. These are the steps we recommend taking, in order to effectively compare mortgage quotes from different lenders.
Here’s something that might surprise you. You can obtain a home loan from several different types of mortgage lenders. These include credit unions, large commercial banks like Wells Fargo and Bank of America, mortgage companies, and thrift institutions.
Here’s something else that may surprise you. Different lenders might offer you dramatically different terms and prices, even though your qualifications remain the same. They have different business models and different policies regarding risk. As a result, they price their loans differently.
This is why it’s so important to gather and compare mortgage offers from several different lenders. It’s the only way to be certain you’re getting the best price. Step 2: Consider Using a Mortgage Broker
Mortgage brokers can help you compare quotes and offers. Brokers don’t lend money directly to consumers. Instead, they help arrange deals with other lenders. You can think of the broker as a “middleman” between the borrower and the lender. He or she tries to match the borrower with the right kind of loan, by gathering offers from multiple companies.
A broker can help you with mortgage comparison shopping by finding a lender for you. They often have access to dozens of lenders and hundreds of loan products. This can give you more options to choose from, and with less effort on your end. Continue reading
