twils000 - Shopping Around

If it Seems Too Good to be True, It Probably Is

But you really didn't need us to tell you that, did you? Mortgage money and interest rates all come from the same places, so if a deal sounds really unbelievable, better to ask a few questions and discover the "hook."

Is there a prepayment penalty?
If the rate seems incredible, are there extra fees?
What is the length of the lock-in? If fees are discounted, are they built into a higher interest rate?

You Get What You Pay For

If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Best case - expect very little advice, experience or personal service. Worst case - expect that you may not close at all. All too often, you won't know until it's too late that the cheapest isn't the best. But if you want the "cheapest" quote, head out onto the Internet - and we wish you good luck! Just remember that the horror stories you may have heard from family, friends or coworkers about missed closing dates, or surprise, last-minute changes in interest rates or costs are often due to working with discount or Internet lenders who often have a serious lack of experience.

Most importantly, remember that the cheapest rate as part of the wrong strategy can cost you thousands more in the long run. This is the largest financial transaction most people will make in their lifetime. Trident Mortgage will not always appear to be the "cheapest." Yes, our rates and costs are extremely competitive, but we have also invested in the systems and the team to ensure the top quality experience you deserve.

Make Correct Comparisons

When reviewing estimates, don't simply look at the "bottom line." You absolutely must compare "lender fees" to "lender fees" as these are the only ones that the lender controls. And make sure lender fees are not hidden down amongst the title or state fees. A lender is responsible for quoting other fees involved with a mortgage loan, but since these are third-party fees, they are often under-quoted by the lender to make their bottom line appear lower. In short, they know many consumers simply look at the bottom line and are uniformed when it comes to analyzing the individual fee components. What about the actual percentage rate, or APR? Sadly, this is easily manipulated as well and therefore is worthless as a tool of comparison.

Understand That Interest Rates and Closing Costs Go Hand-in-Hand

Keep in mind that you can have any interest rate you want - but you may pay more in costs if your rate is lower than the norm. On the other hand, you can pay discounted fees, reduced rates, or even no fees at all - but understand that this comes at the expense of a higher interest rate. In may be that one of these scenarios is right for you, or perhaps somewhere in between. It all depends upon your financial goals. A professional lender will be able to offer the best advice and options by balancing interest rates and closing costs in a way that correctly fits your goals.

Understand That Interest Rates Can Change Daily or Even Hourly

When you are comparing rates and fees between lenders, you are looking at a moving target. For example, if you are choosing between two lenders based upon their quoted rates and costs, you must get this quote at exactly the same time, on exactly the same day, with the exact same terms, or it will not be an accurate comparison. You must also know the length of the rate lock you need, since longer locks typically have slightly higher rates.

Again - Our advice to you is to be smart. Ask Questions. Get Answers.

As you might imagine, we wouldn't be encouraging you to shop around if we weren't pretty confident that we can give you a great value along with great service.