Shopping for a Mortgage

Consumers want the best rate on their mortgage. Committing to a 10- or 15- year loan is a big decision, and those in the market are inundated with offers – on television, on the radio, on the Internet, in the newspaper and through the mail. Most of the advertisements emphasize one thing – low rates.

It is easy to be misled by this barrage of media exposure into thinking that rates are the only consideration when shopping for a mortgage loan and consumers might be tempted to choose the lender who advertises the lowest rate. However, as experts relay, this is not the best way to shop for a mortgage loan.

When it comes to advertised mortgage loan rates, consumers need to keep in mind is that lenders are not obligated to stick to them. While indeed that stated rate may have been available at some point, to some consumer, there is no guarantee it will be available to you once you are ready to stop shopping and actually initiate and complete the mortgage loan application process.

Consumers should be mistrustful of lenders who are quick to promise a rate without obtaining sufficient information first. Some lenders may give you a low rate based on factors that are not in line with your situation, and this may mislead you into thinking they offer the lowest rates. You will be in for an unpleasant surprise when the rate you are quoted once you have provided your information turns out to be higher.

As in most things, what seems too good to be true often is. While most lenders are honest in their dealings, be proactive in making sure you are getting accurate information from a reputable company.