Shopping For A Mortgage
I have written about this topic many times and that the days of shopping for a mortgage are gone. Making sure you are dealing with an expert and someone who is honest is what is most important. Jack Guttentag who writes a lot of mortgage related articles and an industry expert seems to agree with me now.
In his article “5 Truths About Mortgage Shopping” he states that “I confess that it took awhile before I realized this myself. Over the years, I wrote several articles on “how to shop for a mortgage,” which I am now in the process of revising. The corrected title will be more like “how to minimize the loss from having to select a lender without knowing that lender’s price.”
He goes onto to say “The textbook analysis of competition assumes that buyers can buy at the prices quoted by sellers. In the mortgage market, however, lenders have no obligation to lend at the price they quote until they lock, which may take days or even weeks. In the meantime, the quoted price is very likely to change with the market, which is very volatile. Quoted prices are reset every day and sometimes during the day. ”
Unfortunately in the Fort Lauderdale and South Florida real estate and mortgage market there is a lot of fraud and some will quotes interest rates that don’t yet exist to try and get your business. This is why the interest rate you quoted doesn’t matter, it’s what you are locked in at that does. I highly recommend reading his article.