Two things you need to consider before choosing a lender and a home loan.
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Today, I'm here to talk about interest rates, the fees lenders charge, and why they're both important. If you are a prospective homebuyer, it is essential to keep in mind that in addition to the interest rate, lenders also charge upfront fees, which is how they make their money. Therefore, it is crucial to consider both before you make any decisions.
For instance, one lender may offer you an interest rate that is 0.25% less than another lender’s, but they might also charge you thousands of dollars more in upfront fees. If you plan to refinance your home in the next three to four years, it may not be wise to opt for a slightly lower interest rate with significantly higher upfront fees.
My recommendation is to check with at least two or three lenders to get their rates and the upfront costs associated with the loan, such as loan origination fees. This way, you can compare all of the data to make a well-informed decision that balances both factors. Also, don't hesitate to get pre-approved by a few different lenders; it won’t affect your credit score.
If you have any questions about how to do this, feel free to contact me at (772) 370-8631. I would be happy to hear from you, so reach out anytime.
