Monday,
October 22, 2012
If you are looking for a mortgage
broker, then chances are you have searched them up on Google or Bing or on some
other search engine.
It might have included various help
and review sites written up by people just like you, different mortgage lending
websites and Internet lenders promising the lowest possible rates.
If you haven’t guessed it, we are
going to talk about that last one and why it can be a terrible financial
decision to not deal with a mortgage lender face to face.
Internet Lenders and their Hazards
Let’s clear the air on this real
quick – no mortgage lender can guarantee a low rate. There are simply far too
many variables to factor in and it is impossible for them to just give you that
coveted 3% interest rate.
Sounds like false advertising?
Technically it’s not; they often can get you a fairly low rate however though.
With that rate comes a whole bunch of fees that really are just made up.
Don’t get hit with hidden fees that
pop up at the last second. Be smart and don’t deal with online mortgage
lenders. It’s not just the fees though; online lenders could scam you among
other things. Just remember that it is always safest to work face to face with
a local lender.
The Facts
The facts in mortgage lending are
that there is a process needed to be conducted to determine your eligibility
for a rate.
It’s not just some company guarantee
it all depends on what you want, your financials, how long you will take to pay
it back, etc. The variables that serve as the deciding factors for your
interest rate include:
- FICO scores must be above 740 for a borrower to qualify for that envied lower interest rate.
- Loan term lengths also adjust the determined rates; longer loans mean higher rates.
- A jumbo loan will also increase your rates.
- If the risk is determined to be high by the lender, then they are going to raise the rates too.
- Mortgages vary and so do their perspective rates.
- Rental properties raise the rate.
- Locking in your term will also alter the rate.
These are the key variables that are
all required when determining your available interest rate. At Indigo Mortgage,
we always recommend that you work face to face with your local lender.
We like to know who are customers
are and you should also likewise know who you are working with to secure the
best mortgage loan and lowest interest rate for you.
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