Wouldn’t it be Nice if all Lenders Used the Same Form to Quote Rates & Costs?
I’d first like to thank you for staying in touch, your continued business and repeat referrals. I greatly appreciate the response to my blog each and every week. This time around, I have provided you with my first video for your viewing pleasure. Still just as informative, but with a little flair and humor. Enjoy!
My first video is a quick discussion stressing the importance of asking for the official “Loan Estimate” or “LE” when comparing mortgage rates & costs between lenders.
There are many factors to consider when making the very important decision on whom to hire for your mortgage loan officer. Getting a good deal on your mortgage, that is also backed up by great service, is the perfect combination a wise borrower will look for in choosing his/her lender. Our past clients know they have received exceptional value in both of these important areas. We believe this is why they return for future financing or refinancing.
For those currently in the market who may be basing their financing solely on who is quoting the lowest rate and cost, may very well find this proves to be very costly and extremely frustrating in the end. Furthermore, many people who “think” they are getting the best deal, often times end up with a mediocre to poor arrangement. Getting fooled as a rate shopper can occur when the type of disclosure regarding the mortgage terms is either inaccurate or sometimes even misleading. If you are currently shopping for competing mortgage quotes, make sure that the lenders you are seeking are quoting all 3rd party fees and escrows properly and realistically. The simple way to do this is to require that your mortgage quote be shown on the official “Dodd/Frank Loan Estimate”. This is the best way to compare apples-to-apples. Note, the Dodd/Frank legislation replaced the “Good Faith Estimate” with the official “Loan Estimate or ‘LE’” back in October of 2015. Our customers have received the official “LE” for review and discussion from the first pre-approval meeting, to subsequent requests for numbers when looking for homes, to the official application, since it’s inception in 2015.
If you want to see some examples of the official, Dodd/Frank Loan Estimate click here.
Why would you want to accept any other type of financing estimate when there is a standardized “Loan Estimate” that exists? Why would you want to accept any other type of financing estimate when the “Loan Estimate or ‘LE’” is a disclosure form that all lenders have the ability to produce; and eventually, will have an obligation to provide to their customers upon an official application?
Ask anyone who’s been there and done that, the best way to shop for your lender is upfront. As a result, you can move forward with confidence that you have made in right decision. This also lessens the burden and stress of having to find the right lender to start re-documenting your entire file after you have negotiated a successful purchase agreement (which can also delay your closing). If you are deciding on whom to place your pre-approval with, but can’t get a mortgage quote on the official “Loan Estimate”, you are free to send your potential lender’s cost estimate, or fee worksheet to us. We will rebuild it for you on the official Dodd/Frank Loan Estimate, using all of their same, exact numbers, and send it back to you.
If you are looking to purchase a home this year, please contact me. By referral, I will sit down with you to go over your loan options. We will review and discuss monthly payments in various price ranges, closing costs, how escrows for property taxes and homeowners insurance work and what you qualify for. I am always available to answer any questions.
-Bob Hein, Mortgage Lender