Whether you are shopping to purchase a home, refinance or take out equity on a 2nd trust deed, there are a few things you should know about the process. First, and foremost, everyone knows someone who can offer the loan at a better rate! But can they?? When comparing loans, you must compare the interest rate as well as the cost associated with the loan. The only way to do this is to have the Lender provide a detailed Good Faith Estimate (before you apply or have them run your credit) and can GUARANTEE in writing their fees won't change. Most lenders will give you some excuse as to why they can't. THEY CAN!! If they answer anything other than "I will have it to you by the end of the day," be careful. Also, you need to determine how long is the rate locked in for that you are being quoted? Most of my competion will quote you a rate they cannot lock until 10 days prior to closing. What good does that do you today? You need to make sure you are locking in the loan for the amount of time you need to cover the length of the escrow. Finally, make sure the lender will offer you the lower interest rate if rates come down within the time frame of your closing. There are certain time frames and parameters involved. However, you should be able to take advantage of the lower rate if they do come down.
