Why an Online Mortgage Loan Quote Does Not Tell the Whole Story
Online mortgage shopping is considered an asset for may people because you have the ability to look at mortgage loan quotes whenever it is convenient for you. You can analyze quotes without committing to anything, and you will have enough time to make the best decision for you. Many first time home buyers like to look up quotes and plan payments around them. However, there are a few reasons why these online mortgage loan quotes are not always reliable.
The first problem is that online quotes take into account the general public without looking at individual situations. The best thing to do is to contact someone - a mortgage consultant. By dealing with an actual person, they will take a direct look at your financial situation before giving you a quote. An actual person will look at your credit score and history, debt-to-earnings ratio (also called debt-to-income or DTI), taxes, insurance, and other factors that an online quote does not look at.
Secondly, with online mortgage loan quotes, the final loan rate depends on what the latest interest rates are. Interest rates are sensitive and are not guaranteed over an extended length of time. Many websites do not have current interest rate tables. Many websites just use the average rates across the country. The average that is online may be different from the rates in your area. If you deal with a real person, you can negotiate the closing costs and processing fee to get an accurate mortgage rate. Online mortgage rates are fixed, which means that you will possibly receive an inaccurate rate. They also do not generally include fees or "APR."
Finally, when you look at online mortgage loan quotes, many times they will estimate values based on special deals they may be offering, such as significantly slashing the processing fee or closing costs. The problem is that when many people are ready to agree to the terms, that special offer has already expired, and now you will have to pay more. Dealing with a real person will save you that frustration, and you will also receive an accurate quote.
Part of the mortgage pre-approval process is talking to your mortgage consultant about mortgage quotes, payment ideas and other financial issues. You can get all of this when you're ready by clicking the button below.