By Sam Batayneh
I believe that the best service I can do for my customers is to be 100% transparent about the process and educate as much as possible about what they are getting into. Here’s a few pointers:
1. Rates change daily
It used to be that rates changed once a week or so. In fact when I started in this business I used to receive a set of rates as a printed sheet that would usually be updated once every 2 weeks. Things have changed, especially since the latest financial crisis and during the current recovery. My biggest piece of advice if you are comparing rates is to get each broker, lender and bank to quote you their best rate on the same day.
2. Make sure the lock days being quoted are the same
Some sneaky mortgage brokers will quote you the rate for a mortgage with an unrealistically short lock date. Banks usually give better rates if you are looking to act on the mortgage quickly because they can be more sure what they are committing to. On purchase transactions a 30 day lock is probably the shortest period you should be quoted, and on a refinance 45 days is preferable.
3. Compare apples to apples
Most people know that when you compare one rate to another you need to know what the APR and not the headline rate is. The difference between the headline rate and the APR is that the APR rolls into your rate most of the additional fees that come with the mortgage. The APR will be equal to or higher than the headline rate and a more realistic indicator of what you are actually paying for your mortgage. However, not all brokers disclose the same fees as one another so sometimes APR isn’t the perfect apples to apples comparison either. Make sure before you go ahead with a particular individual you completely understand all the rates you will be charged.
I hope this information is helpful.
Feel free to contact me for further details.