It is Important to Get More Than One Mortgage Quote before Choosing

A Home Buying Article Contributed by Elizabeth Fox-Wise

There are Several Mortgage Rates and Options Offered So Be Sure to Get Several Quotes

Contrary to what people often think, there are several mortgage interest rates offered at the same time so it is important to get quotes from several lenders before locking in to a mortgage rate.

The mortgage rate quoted to you by a lender is dependant on many variables. These include, but are not necessarily limited to, the type of mortgage you want, the terms of the mortgage, the length of the mortgage, your own financial strength and differences among lenders.

Therefore, you should never assume that the first mortgage rate quote that you receive will be the same as other mortgage quotes made to you. It is possible that if you seek six mortgage quotes you might be offered six different mortgage interest rates. It is more probable however, that some of them will be same and six different mortgage quotes will probably yield two, three or four different mortgage rates being offered. Irregardless, even two choices are better than only one choice, so it is always best to solicit several mortgage quotes.

When Comparing Mortgage Quotes Remember Not All Mortgages are the Same

You have heard the expression before that you can not compare apples to oranges. When we are talking about real apples and oranges it is easy to see, smell and taste the differences between them. With mortgage quotes the differences may not be as obvious, so be sure that you are comparing apples to apples and not to oranges.

Let's face it, mortgage brokers and lenders are in business to make money. They are salespeople and most of them are very good at what they do. They know that to get your mortgage, they have to quote a mortgage rate and monthly payment that is lower than the next lender. To be able to offer the lowest rate and monthly payment they may do things such as add points to the mortgage which will increase your closing costs, or quote an adjustable rate mortgage instead of a fixed rate because the adjustable will typically have lower rates.

Let Lenders Know You are Seeking Multiple Mortgage Quotes

Most of the time they will assume that you are seeking multiple mortgage quotes anyway, but do not feel that you have to hide this information from them. On the contrary, like most business, if they feel the customer is shopping around, they will work harder to make the sale. In this case, the lender will offer the best mortgage rate available if they feel that you are a strong mortgage candidate and they know you are seeking multiple quotes.

While it is not appropriate to try to intimidate the lender into a low mortgage quote by letting them know that others are competing for your business, there is nothing wrong with letting them know that someone else has provided a better mortgage quote and giving them the opportunity to re-work their quote and offer you better mortgage terms.

What you do not want to do is seem so eager to secure a mortgage that they feel that they can sell you at any rate and under any mortgage terms.