How to Shop Lenders?
Summary
In this video, I explain the three key factors to consider when shopping for lenders. I discuss how interest rates can vary depending on your desired rate and market terms, as well as the importance of understanding the cost of obtaining the rate. I also highlight the significance of lender fees, such as processing, admin, and underwriting fees, and how they can impact the overall cost. Additionally, I touch upon the potential impact of mortgage insurance on monthly payments for those putting less than 20% down. No specific action is requested from viewers, but the information provided will help them make informed decisions when shopping for lenders.
Transcript
0:00 How to shop lenders? There’s three things potentially to look for. The first one is interest rates. In just FYI, you can get any interest rate with any lender, right, to a certain extent.
0:17 But it just depends on what it’s going to cost or not cost. So when people ask me what’s your rate, there’s not just one rate, it’s based on what rate you want.
0:27 And also your scenario and market terms. Okay, but essentially it’s interest rate. It’s cost of obtaining interest rate. So are there any lender fees processing admin underwriting?
0:39 Are they? See you next week. Making you pay points to get that rate. Let’s say one lender is at six and a half, right?
0:46 Lower rate, but maybe they’re charging 10 grand to get there and the other lenders at six, seven, five, but they’re charging to two grand.
0:53 Most likely that, you know, the higher rate lender is actually cheaper, but you’re just seeing the interest rate. So it’s important you have to look at interest rate, cost of obtaining rate, and also if you’re putting less than 20%.
1:07 Your monthly mortgage insurance. Sometimes lenders with lower interest rates with less cost have much higher mortgage insurance. So your payments end up higher because you don’t know how to shop and lenders know that.
1:19 So they’re just putting that low. Right in front of you and you’re like, great, that’s the better deal. When in reality, it’s a worst deal because your mortgage insurance is a lot higher.
1:26 I hope this helps.
