16 Jul Why You Should Shop Around for a Mortgage
Throughout the mortgage world, many lenders are wary of potential clients shopping their mortgage rates around to other potential lenders. They don’t want clients to potentially see better deals or rates elsewhere.
At City Creek Mortgage, we’re the opposite – we’re so confident in our programs, and maintain such a desire to see our clients succeed, that we encourage customers to shop around at other lenders. There are several negative outcomes that can take place if you never shop around while searching for a mortgage loan – here are a few of the most common.
If you only work with a single lender and they lack in any major area, you could be in trouble. Some might only offer limited loan packages or lots of sneaky teaser rates, and even worse in many cases, bad lenders will be unable to properly explain certain elements of the process. A lender doing a bad job explaining something like an adjustable-rate loan could lead to enormous financial issues for you if you take the wrong loan.
No Comparison Points
Using only a single lender prevents you from having any comparison points for the market. Different lenders have all sorts of different fees – origination, title insurance, application, mortgage broker, rate lock and others. These can vary wildly between lenders, but if you don’t shop around, you’ll have no way of knowing if your lender is charging very different fees than others.
Missing Out On Special Deals
Lenders want your business, and to get your attention, they’ll roll out deals. Lenders might fold closing costs into a mortgage even though they don’t have that listed option, or might be willing to negotiate these kinds of items. But again, if you only stick with one, there’s no point leverage.
Less Bargaining Power
Down these same lines, failing to shop around completely destroys your bargaining power. A lender who knows you have no other options has no reason to budge on any points of contention, and no reason to give you a better deal.
Want to learn more about the mortgage loan process, or any of our services? Speak to the brokers at City Creek Mortgage today.