“Am I getting the best deal?”
Unlike buying a couch or a TV, a one-to-one comparison takes a little more work with a mortgage. There are variables like lender credits, mortgage points, and completely different loan products just to name a few. For example, a loan estimate from a lender might have a very low interest rate, but they’ve included a higher upfront cost, in the form of buying your interest rate down. If comparing only interest rates from two different lenders, this one may look drastically low compared to another estimate without a rate buydown.
"If you see a loan estimate that blows the rest of your comparisons out of the water, it's a good idea to ask for a locked loan estimate. If a lender balks at sending you a locked one, or requires you to pay to lock in your rate, it's big red flag" says Lower loan expert Jake D. "But, good news is, now you know, and you can start looking for another lender."
To avoid FOMO, the first thing you’re going to want to do is get multiple opinions, or initial loan estimates. Two would be great, but three or more would be even better. Just make sure whoever you apply with has a no-impact credit check to get an estimate. That way, you can get as many opinions as you want, without it affecting your credit score. You can get your initial loan estimate from Lower here. (With no impact to your credit, of course.)
To get a loan estimate, you’ll need to submit an application. (Make sure it won’t impact your credit if you’re getting estimates from multiple lenders.) The way you go about this varies by lender, but usually happens with a phone call or an online application. Get started with Lower here.
