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Tips for evaluating lenders and loan estimates

Techniques to get a lower rate
Getting a low refinance rate is simultaneously an art and a science.

Certain strategies work, and some don’t. Each situation is different, and the stakes are high.

Certainly, rates are hovering close to 3-year lows, but that doesn’t mean lenders will just give you their best possible deal and call it a day.

In many cases, you have to poke and prod for your best rate.

And, how do you do that?

With the right knowledge, you can approach your lender with confidence, knowing how to compare one offer with another, and even use one offer against the other.

Ready to get the best mortgage refinance rates? Here’s how.
Make sure your credit and debt are in check
To have the best rate from any loan provider, you should have a good credit score and a low debt-to-income ratio. In 2018, financing scores and DTIs were the two primary reasons why lenders denied refinance applications.

Lenders offer the best rates to consumers who have a track report of paying their bills on time and managing their debt.

Therefore, you’ll want to make sure ones financial house is in order by checking ones credit report’s accuracy and calculating your DTI before you start shopping for the lowest refinance rates.

Keep in mind that the most less than perfect credit score or excellent DTI doesn’t necessarily disqualify you from a mortgage refinance — but it means you won’t be able to get the best rates and maximize your savings.
Compare multiple loan estimates
You can get as many mortgage refinance estimates as you want. But unfortunately, many borrowers only get 1 quote or apply with one lender.

By asking for a quote from just 1 lender, you could be making thousands — if not tens of thousands of dollars — in savings behind.

Thankfully, the web makes it easy towards obtain quotes from multiple lenders.

But here’s in the kicker: you can’t simply get multiple quotes. You must show the quotes to the another lenders.

Possibilities are that high quotes will come down. Loan companies will lower their rate and/or fees to keep your business. Smart shoppers come out on top when they use multiple quotes to their benefit.