The simple and indisputable answer to this question is yes. Approaching several lenders for mortgage rates before applying for a mortgage is a common practice. And this is what this post would elaborate on – its several advantages.
Why Getting Multiple Mortgage Rates is a Good Idea?
Simply put, it can save you thousands, perhaps even more, of rupees when you’re planning to apply. Interestingly, some people find this exercise tedious, cumbersome, and even futile. They feel that once you’ve made up your mind to apply for a loan, just do it and get it done with. Why waste time wandering to several places in search for different quotes? The easiest would be to ask the bank you’ve had an account with all these years and just for it.
While this may sound extremely tempting, not to forget easy and faster too, it’s not always a great idea to rely on the only bank close to you or where you have an existing account. For, if you don’t know what the others are offering, you’d never be able to negotiate on the rate offer that you have in hand.
Get Loan Quotes from At Least Four Lenders
You’d literally need to shop around for your loan just as you would for the item that you need the loan amount for. This could be house, education expenses or care at a medical facility. You’d always ask people for reviews and finalise on the best one. The same needs to be done during loan application too, notwithstanding that finding the best mortgage lenders may take hours or even days.
The ideal scenario is to approach at least 4 different lenders. Ask each of them for a quote on the loan amount that you wish to receive. Remember that this number excludes the one where you already have an existing account. Besides, it’d also be a good idea to approach any other credit union, mortgage broker, or financial institution that you may know of which have a reputable name in lending.
How it Helps
Once you have all the mortgage rates in hand from multiple individuals/institutions, it’s time to get to action. The first thing to do is compare all these rates to facilitate choosing between two mortgage lenders. This comparison would also help you easily arrive at the best loan rate of all.
Remember that you’re in this exercise to save your money as much and as far as possible. So if this involves going to any means to get the best loan quote that’s desirable to you, it’s worth it in the end. Also, you’d get to learn about the various discounts or other promotional offers provided by some lenders in the market. And, when you have more than one option, you’re always at an advantageous position. You enjoy the chance of of negotiating with others using that quote as leverage.
So don’t rush through that loan application just as yet. Take your time to get quotes, review them, and find the best favourable deal.
Be the first to comment