I originally published the article below in January 2011. Yet the message is as relevant today as it was back then. Mortgage borrowers continue in their attempts to “shop around” for the lowest rates and closing costs, not realizing their efforts are an attempt in futility.
Mortgage rates fluctuate from day to day. Any lender can quote you a rate. Yet will your rate be the same when it comes time to lock? Probably not.
In most states, most of the fees you pay at closing are regulated and are charged by entities other than your lender. Thus, when it comes to closing costs, it makes little difference what lender you choose, as your total costs should be virtually the same regardless of the lender!
Most borrowers don’t understand the intricacies of mortgage underwriting, nor are they aware of the potential landmines that can arise without the proper guidance. Thus, many borrowers don’t know how to compare one lender with another. If it were simply a factor of rates and costs, then my idea for choosing an online surgeon might not be so far fetched!
Just like there’s so much more to choosing a surgeon, there’s so much more to consider before choosing whom to entrust your mortgage to.
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(Originally posted on January 1, 2011)
I had an idea for a new business. It’s a website where medical patients can go to find the cheapest surgeon. Need open heart surgery or your gall bladder removed? Surgeons will compete, underbidding each other until the surgeon with the lowest fee wins your business.
Would you trust this surgeon to operate on you? No? Why not? The surgeon claims he can deliver. Shouldn’t you trust him and let him try? If he screws up, you can always choose another surgeon – right?
This is, of course, a ludicrous idea. Yet this is exactly how thousands of people “shop” for a mortgage. Your mortgage and your home are likely the most expensive and complex investments in your life. Why would you entrust this to the lowest bidding paper-pusher? Why would you seek help from anyone less than the best mortgage professional?
At Mortgage Wealth Advisors,
you’ll receive accurate information, valuable advice,
and a concierge experience.
We’ll ensure your mortgage matches your needs,
complements your financial plans,
and helps you attain your financial goals.
And guess what? The rates and fees you’ll receive from a competent and qualified mortgage professional are probably about the same as if you used one of those “discount” companies. The big difference? Your loan will actually CLOSE.
In this crazy lending environment, it’s critical that you work with the right people who know what they’re doing and can get the job done. Working together, we can ensure that your transaction goes smoothly and stress-free.
Mortgage Wealth Advisors, Inc.
The Right Mortgage Today,
for Your Family’s Wealth and Security Tomorrow
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.
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