There are basically three types of borrowers:
1) The “how much money do we need
Rain City Guide
Your Guide to the Seattle Real Estate Market
There are basically three types of borrowers:
1) The “how much money do we need
Great article. I will add that another way to detect these artificial rates is to consider how much information that broker asked you for quoteing you a rate. If they don’t understand your income, credit, or property details, the rate is nothing more than an educated guess.
When you call for rates before you have a contract, the quote is simply informational. Best to select your lender ASAP after the offer is signed around. Tell the lender you have a signed contract going into escrow and you are planning to select a lender today and lock the rate. Get a written confirmation of the rate and the lock expiration date.
Many think locks are automatically 30, 60, or 90 day locks, when in fact, a loan rep can lock for a number of days, like 23, and make some money by doing that. Best to make sure the lock is good for 5 or more days past closing, especially on a short escrow or if a lot of weekends and holidays are in the mix.
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Rate shoppers fall prey to the same motivations as home sellers who go with the agent who says their home is worth the most money. See my full response at http://www.chicagometroarearealestate.com/?p=36 (“Bait & Switch is Alive and Well in Mortgages as Well as Listings”).
Shoppers are plainly motivated by money, just like home buyers.