If you are shopping for purchase mortgage rates on the Internet, you are probably bombarded with "low rate" offers before the lender even knows your situation. In today's mortgage lending environment, a lender needs to know a little about you to help not only get the lowest and best rate available TO YOU SPECIFICALLY, but also the best program to meet your goals.
Purchase mortgage rates vary a great deal based on, but not limited to, the following factors:
- The credit score of each borrower on the loan
- The loan amount - smaller or larger loan amounts may be priced different than an average loan amount
- The length of rate lock - the longer the time period the lender guarantees the rate, the more cost there is for the lender and that cost get passed on to the borrower
- The type of program - generally the shorter the term, the lower the rate. (A 15 year loan has a lower rate than a 30 year loan.)
It is important to strongly consider service factors, in addition to the interest rate, when choosing a lender as it costs you money and aggravation if you do not close ont he scheduled date.
Great questions to ask are:
Does the lender control the transaction or do they depend on other for loan approval or funding?
Does the lender back up what they say they can do with an On-time closing guarantee?
We encourage you to contact one of our experienced licensed loan officers and they can provide you an accurate rate quote and advise in a few short minutes - it's free.