With mortgage rates at historic lows, some La Quinta homebuyers are shopping for the best loan deals online. The online mortgage marketplace has become an increasingly popular resource for borrowers to research loan rates and options. Borrowers can save a lot of time and possibly money if they find a good deal that works for them. But these online loan marketplaces can also be overwhelming, especially when the deluge of offers from various lenders start pouring in.
The newly formed Consumer Financial Protection Bureau advises borrowers to begin their search with reading the fine print of each of the sites they have narrowed down to work with. It is important to understand the terms of use and privacy policies.
When shopping for loan rates on online sites such as Bankrate.com or LendingTree, be sure to read their FAQ sections (Frequently Asked Questions). Be aware that these sites are in the business to make money working with lenders by generating leads via a pay-per-click formula. If you are providing personal information like your credit score, be advised to find out how widely this information will be circulated . . . and understand that many lenders will be contacting you. For instance, at Zillow Mortgage Marketplace, the avg. number of rate quotes received by a customer is 20, whereas at LendingTree, it is 3 to 5.
Typically, sites will provide rates and information specifically from the lenders they are signed on with. An exception to this is Bankrate.com which offers one table that includes its own lending clients in addition to the 5 largest banks and other lenders in approx. 600 local or metropolitan areas.
Let it be known that for the last 3 years, the difference between the highest and lowest available rates was wider than it has been most recently – which makes comparison shopping even more important . . . though advertised rates are indicative rates, not offers. Borrowers also need to figure the mortgage initiation fee and closing costs into their calculations.
Experts suggest that borrowers make sure they feel in control and only give your personal information out to lenders of your choice. If a credit report is pulled by lenders, it is in your best interest to find out what rights they have to that information other than evaluating your loan request.
Doing your research on the various sites you visit will serve you, and make sure you find out about the quality control at the sites you visit. Legal experts suggest that online sites who advertise that they are making the easiest and fastest comparisons for the borrower may not be in your best interest, as this process should be analytic and take due amounts of time.
So, the moral to this story is – be wise, take your time, do your due diligence, ask questions and read the fine print. If an offer sounds too good to be true . . . it probably is.
If you are looking for a Buyer’s Agent, Kimberley Kelly is experienced and successful at representing the Buyer’s best interest and working hard to find just the right house for them. Buying a home is a big financial and emotional investment and you want to work with an Agent you can trust. Give Kimberley a call at 760-285-3578 for a free consultation or check out her website at www.kimberleyjoykelly.com. You’ll be glad you did.