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We've a contract on a new construction and is scheduled to close end April. I've got several quotes for the mortgage but what do I do next? I guess I'm just confused because rates tend to fluctuate all the time so the quote that I have today might not be good the next day. So how do I actually go about securing the best quote? Do I apply to a few mortgage brokers and then get daily rates update and then only lock in when I feel comfortable?
We've a contract on a new construction and is scheduled to close end April. I've got several quotes for the mortgage but what do I do next? I guess I'm just confused because rates tend to fluctuate all the time so the quote that I have today might not be good the next day. So how do I actually go about securing the best quote? Do I apply to a few mortgage brokers and then get daily rates update and then only lock in when I feel comfortable?
Stop trying to chase the rate. Rate shouldn't be the only thing you look at when obtaining a mortgage. Get a good rate lock in to start the process.
you must have preapproval letter from some of them. get good faith estimate from few of them that you seriously want to do business with. then pick one that you like the most, and ask for 30 days lock.
i am surprised that you haven't done all or most of these steps already.
First off get a refferral from someone you trust to a Loan Officer they have worked with and had a good experience with. The LO makes or breaks your experience not who they work for (broker, big or small name bank).
What you want is a Initial Fee Estimate(used to be called Good Faith Estimate) from 3 LO's on the same day and time- how you accomplish this is talk with 3 today and tell then you want a IFE on their opening rates tomorrow morning. This way you know your getting quotes from the same rate sheets and you don't get " since I sent that to you rates changed and I'm now as high as everyone else".
Once you get these compare 800 section fees for identical interest rates.
Basically you could have any combination of these approximate fees depending on rate:
Appraisal- $360
Origination- $1% of loan amount
Discount- (your choice to buy down rate but rarely recomended)
Tax Service: $85
Flood Certification: $25
Commitment: $700
Credit Report: $15
Most any other fee in this section is fluff.
Other sections as in closing, attorney, recording, escrow deposit, etc will all be the same regardless of lender so disregard these. these are the areas unscroupulous LO's lowball things and brush it off as "those fee increases have nothing to do with me"
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