Blogging About Loans: Do you shop rates with lenders?

An office of elite mortgage lending professionals with a common interest and goal focused on providing customer service that exceeds expectation. Thereby building our business from repeat and referral opportunities. Ruth Vogt. LMB 100023827. NMLS 257576. Regulated by the Division of Real Estate. Fairway Independent Mortgage is an Equal Housing Opportunity.

Do you shop rates with lenders?

Do you compare rates trying to shop for your buyer's "best deal"? Determining what their "best deal" is will be getting more and more difficult because so much now relies on the borrowers FICO scores! Here's a chart that is worth taking a peek at to see just what a few points in a FICO score can do to their payment:

FICO Scores APR Monthly Payment
760-850 5.751% $1,751
700-759 5.973% $1,793
660-699 6.257% $1,849
620-659 7.067% $2,009
580-619 9.165% $2,449
500-579 10.194% $2,676
Source: Myfico.com (30 year fixed-rate mortgage on $300,000) 

Finding a good lender, that communicates, that gets figures AND funds to the closing table on time suddenly just isn't enough. Lenders need to be scratching their heads and figuring out how to get the best rate by educating borrowers on HOW TO bump their score, even just a little, to get to that next best FICO score tier. OH! And by the way, IF the lender does understand this concept, and will work with the buyer to increase the score, will they give the benefit back to the consumer OR just pocket it?

Something to think about!!


Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.

Ruth Vogt Colorado Mortgage Lender Ruth Vogt, Sales Manager

 #LMB100023827, NMLSR# 257576

 Equal Housing Opportunity. 

 Regulated by the Division of Real Estate.

   www.ColoradoHomeLender.com

   ruthv@fairwaymc.com  303-881-7849.

 

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Comment balloon 1 commentRuth Vogt • September 11 2008 08:35AM

Comments

Hey, Ruth. Thanks for sharing. I just finished helping my client get a great rate (5.5%) and he is thrilled. Take Care, Jim

Posted by Jim & Maria Hart, Charleston, SC Real Estate (Brand Name Real Estate) almost 10 years ago

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