There are a few numbers that will be vital during your home search and mortgage acquisition, and one of the single most important is your mortgage rate. Referring to the rate of interest you'll pay across the life of your loan, mortgage rate can have a large impact on the total amount you pay over the years -- and shopping around to get the best rate possible is generally advisable.
At The Albright Team, we're happy to assist clients looking for homes for sale in Las Vegas in numerous ways, including recommending top loan officers and loan originators who offer our clients quality rates. What are some of the tips we regularly offer clients on how to shop around for the ideal mortgage rate? Here are a few to keep in mind, which we'll discuss in this two-part blog series.
Don't Choose a Lender Based on Advertised Rates
Chances are, you've seen a number of advertisements from various mortgage lenders about their rates. Simply put, these kinds of advertisements should not be a deciding factor when choosing a lender.
Here's why: first, the rates advertised are usually the lowest possible rates that people with perfect credit scores can qualify for. In other words, if your credit score is not in excellent shape, you're likely to be offered a higher rate than what's advertised.
In addition, the rate you're quoted may come with a number of strings attached, such as the requirement that you purchase private mortgage insurance (PMI), use a specific type of property insurance, or agree to pay certain closing costs. When all is said and done, the rate you're actually offered may end up being much higher than what was advertised.
Get Rate Quotes from Multiple Lenders
When shopping for mortgage rates, it's vital not to just accept the first rate you're offered. Instead, get rate quotes from multiple lenders so that you can compare and contrast.
It's important to keep in mind, however, that simply getting a rate quote is not enough. Make sure you're comparing apples to apples by getting rate quotes for the same loan amount, loan type, and term length. This will give you a true apples-to-apples comparison that will be much more helpful than comparing rates from different lenders for different types of loans.
In addition, make sure to ask each lender about any and all fees associated with the loan. These fees can add up quickly, so you'll want to make sure they're factored into your comparison. For instance, some lenders may charge a higher origination fee than others, while some may require you to pay for private mortgage insurance (PMI) even if you have a 20 percent down payment.
In part two of our series, we'll go over some additional tips here. For more on this, or for help finding the best real estate listings in your area, speak to the staff at The Albright Team today.
Kelly Albright is Broker/Owner of Vision Realty Group and has been in Real Estate for 17 years. She has closed over 700 homes in Las Vegas, North Las Vegas, and Henderson.