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