How Mortgage Comparison Sites Can Help Borrowers
Get Rates From Different Lenders
Once you enter your personal information one time, you can get rate quotes from multiple lenders all in one place. You’ll have to enter information such as your zip code, potential purchase price, down payment amount, and your estimated credit score. You’ll then be provided with rate quotes from a variety of lenders. The information they provide is basic, such as interest rate, monthly payment, lifetime interest, and fees. You can then decide from there if you want to obtain more information from a particular lender.
Research the Lenders
Once you know the lenders offering you a mortgage, you can do your research on that lender. Read the reviews right on the mortgage comparison site as well as reviews elsewhere. You’ll want to know the good and bad points of each lender.
Because each borrower has different needs, you may identify with some of the reviews, but not others. Pick and choose the information that applies to you as you decide how to proceed. Once you choose a lender, you can move forward with the mortgage process.
Negotiate With Lenders
When you use a mortgage comparison site, you have the advantage of knowing what other lenders have to offer you. This can be used as a bargaining tool if you choose to do so. If one lender offers a lower interest rate than another, but you like the features of the lender with the higher rate, try negotiating the rate. These lenders know you have other rates available to you, so they may be willing to do whatever it takes to get your business.
Compare the Fees
There’s more to a mortgage than the interest rate. Lenders also charge a variety of fees. These fees can greatly increase the cost of the mortgage. This is why you shouldn’t fall for the lowest rate offered to you. Comparing the interest rate and the closing costs together will give you the best indication of which loan is right for you.
In some cases, it may make sense to pay higher fees. For example, if you know this is your ‘forever home,’ you may want to get the lowest interest rate available. Since you’ll likely pay that interest rate for the next 20 – 30 years, you’ll want to cut down the cost as much as possible. This may mean paying a few more fees upfront, but you’ll come out ahead in the end.
If you know this isn’t your ‘forever home,’ though, paying those fees now might not pay off in the end. If you sell the home too soon, you won’t realize the savings of the lower interest rate. In this case, taking the higher interest rate makes more sense since you will only pay it temporarily.
Mortgage comparison sites can help you get the most out of your mortgage. You don’t have to make multiple phone calls or visit multiple lenders. You can get the quotes right from the comfort of your own home. You can even do your research from home as well, making the process of getting the best interest rate and fees easier for you when you need a mortgage.