Mar
13
Let’s Go Shopping
Filed Under mortgage, rates | Leave a Comment
The best blogs for real estate discussion are the Rain City Guide and the Blood Hound Blog. Made up primarily of real estate enthusiasts from around the blogosphere, these two blogs kick ass!
This article initially caught my attention because it discusses the perils of rate shopping. However, it generated a lot of commentary. By a lot, I mean you could write a 30 page dissertation on the comments alone.
Why Selecting a Lender by Rate Alone is Not in Your Best Interest
This article caught my attention because it discusses the trials and tribulations of shopping for a loan via Lending Tree. It’s quite lengthy but the lessons learned are worth reading especially if you’re shopping for a mortgage.
If you’re going to shop for a mortgage, caveat emptor!
Jan
25
FAQ: How do I save on closing costs?
Filed Under faq, mortgage | Leave a Comment
Q: How do I save on closing costs?
A: To save on closing costs, you need either strong negotiating skills or a lot of time on your hands to shop.
Strong negotiating skills: When dealing with a lender one on one, you need to realize that everything is negotiable. It’s a matter of who’s going to pay what. If you don’t want to pay for an appraisal, a credit report, a processing fee, etc. you can let the lender pay for them but you may get a higher rate. Some lenders pay for your appraisal especially if you’re a referral or a repeat customer. Some lenders charge an application fee on their good faith estimates only to waive it at closing. Have your lender explain each fee. If they have trouble explaining a fee or if they say “don’t worry about this fee” or you should choose another lender.
Lot of time on your hands to shop: Have lenders compete for your business. However, when lenders compete you have to remember that not every lender plays by the rules. One lender may give you the deal of a lifetime just to get your business and surprise you with a higher rate or costs at closing. Make sure you shop on the same day as well since rates change daily and make sure you only compare the lender portion of the good faith estimates (section 800) since some lenders may not include title and government fees.
The real answer is caveat emptor.