Trust me, I get it. Society has taught us that this is the #1 question to ask your mortgage lender.
Unfortunately, it's not nearly that simple (just like everything else in the mortgage world!). As a result, people can often become frustrated when shopping for a home loan. They may worry they are getting "sold" or being misled.
There is a strong difference between what interest rate a mortgage lender can offer vs what interest rate a person may qualify for. A phone call to discuss the factors that affect what interest rate you may qualify for is important to have with your lender. A lender that provides you with an interest rate, without properly getting to know your unique financial situation first, will likely prove to be disappointing. To avoid potentially wasting your time and potentially being blindsided that you do not actually qualify for the rate you were quoted upfront, I would strongly urge you to work with a lender that asks qualifying questions upfront!
Here’s some of the factors that can play into what interest rate you may qualify for:
Be careful with online rates! They may mislead you!
I had a customer recently call their big national bank to apply for a mortgage. They had checked the rates online first, which seemed to be better than everywhere else. However, when they received a rate quote in writing, it was about a 1% higher than what the rate was online. They were absolutely furious. Who can blame them?!
**Banks and lenders publish their best interest rates online. Many times, their best interest rate(s) published are taking into account…
A friendly reminder to read the fine print! By law, banks and lenders are required to provide appropriate disclosures.
Key Takeaway: Unless the lender has a full loan application from you, can provide you an estimate in writing, and can lock in the interest rate they quoted that same day, I would not be completely confident in that rate and would proceed with caution.
Sr. Mortgage Banker
NMLS# 1277963
O: (410) 794-4127
kspurrier@apexhomeloans.com
apexhomeloans.com/kait-spurrier