I just read a report that said 40 percent of home-buyers do not compare mortgage providers. To me, this seems that it must be due to a lack of knowledge. I mean, most people compare stores when they buy a new television –why wouldn’t they compare rates and services when they are making the largest purchase of their life?
For fun, I asked a few random people today if they thought comparing lenders was important and got answers that I kind of expected. One person told me “all mortgage guys are offering the same rates.” Another said that he wouldn’t want to waste the time of professionals that he had no intention of using. And finally, the last person told me that he didn't want his credit run by a few different lenders because he feared his score would lower every time it was run.
To that, I would say 1) all mortgage professionals are not the same. Many have different options and rates and can service better than others. Sometimes it’s good to get a second (or third) opinion just to re-affirm your preferred choice. 2) You are not wasting anyone’s time. It is part of a mortgage professional’s job to go over what they offer and let you know what type of rate you qualify for. You never know, you may be pleasantly surprised and save some money by going with someone whose time you “didn’t want to waste.” 3) Two or three lenders pulling your credit in the same month acs like one pull and doesn't effect your score. Only when it becomes excessive will it lower your score --basically the difference of smart consumer shopping and trying to get credit and/or jumping from denials.
When considering what will most likely be the largest purchase of your life, I strongly urge you to talk to more than one lender. I have a few mortgage professionals who I would recommend that you talk to. Keep in mind also that the lender with the lowest rate is not always the best choice. You need someone who you can trust and is reliable. I know several who I would proudly recommend -- Please do not hesitate to contact me if you want to reach them. Keep in mind that I get no financial reward by recommending these professionals. I only do so because I have worked with them and know they do a great job. Keeping my clients happy is essential to me!