Getting the best mortgage interest rate
Being in the business people ask me all the time how they can get the best interest rate on the mortgage. People think it has to do with credit rating, people think it has to do with the company they choose, but its actually more about your actions than your credit or the company you choose.
They key to getting a great interest rate is to get the rate LOCKED IN and Guaranteed while you still have the most leverage in the process. Many borrowers will discuss rates up-front when they are in control, but do not obtain a written lock in commitment. Early on in the process when you are making a decision on which lender or broker to go with, you are in control. Later on when you are days away from closing, the lender is in control. This is the power paradigm in a mortgage transaction, so in order to get the lowest interest rate on your mortgage, you have to lock in your rate when you hold the power.
Many mortgage companies take advantage of this power shift and will tell you anything you want to hear up-front when you have the power, and then when its too late for you to choose another lender - rates have suddenly “Gone Up”. The simplest way to protect yourself is to get a written lock in commitment up front. If a company refuses to give you this written commitment, move on to another one.
The best mortgage rate is the rate you can get a written lock in commitment on THAT DAY. You should always talk to multiple lenders and compare rates and LET THE LENDER KNOW YOU ARE COMPARING THEM TO OTHER LENDERS OR BROKERS, THIS WILL ENSURE THEY OFFER YOU THE BEST RATE THEY CAN.
At the end of the day, only consider offers from lender/brokers who are willing to give you the written lock in commitment for the mortgage rate.
If you follow this one simple rule, you can ensure getting the best mortgage rate possible.
Robert Palmer
R P Funding, Inc
Jacksonville Beach, Florida
904-270-2812
R P Funding is a full service, Florida licensed Mortgage Lender, as well a an FHA Direct Endorsement Lender. R P Funding Specializes in low mortgage rates all over Florida for refinance and purchase transactions.