Showing posts from May, 2020

Selecting the Right Lender

Picking the right lender will affect both the strength of your offer and how much you end up paying for the house. According to the CFPB , 47% of homebuyers do not shop for mortgages, which is a costly mistake.  Definitely get quotes from different lenders and compare.  You can also negotiate with your lender on the rate.  When comparing different lenders, below is a simple framework I use with 1-4 being the most important: Interest Rate : this is the rate that you'll be paying every month to 'borrow' the money and what you write off on your taxes. APR : this rate includes all fees such as closing cost, points, loan origination fees, etc, on top of the interest rate. This is a more accurate rate to compare than interest rates alone. Relationship Discounts : most lenders will reduce your interest rate if you bring a certain amount of money over to their bank e.g. transfer $250K in savings/401K/stocks will reduce your rate by 0.125%. Time to Close:  how long will it take your