Loanzen Blog

With rates at historic lows it’s important to learn how to shop for a mortgage. Shopping for a mortgage can be a nerve racking and information dense experience if you’re not prepared. Today we’re going to discuss 5 tips that will help you obtain the best mortgage deal.

1. Know what type of deal you want

Are you looking for a 30 year fixed or a 5/1 option ARM (gulp)? Be forward with the broker/lender and tell them exactly what type of mortgage product you want. If you’re not sure, check out the Web or ask a friend the trade offs between different offerings.

2. Have your recent credit score, household income and current LTV (amount down for purchases)

Simple stuff however without these three details a loan officer will not be able to help you determine an approximate rate and fee schedule. LTV is a percentage of the total appraised value of real property. For example, if a borrower wants $100,000 to purchase a house worth $150,000, the LTV ratio is $100,000/$150,000 or 66%.

3. Decide on a price strategy

Are you looking to pay points? Do you want the mortgage straight up? Is this a no cost refinance? Take an hour and read about mortgage pricing. You’ll be be happy you did. Most brokers/lenders, again, will not be able to quote you unless you know exactly what type of deal you want.

4. Gather together a list of 5 brokers/lenders

Probably the most essential step. Only deal with folks on referral of with large financial institution you can trust. Do NOT simply open a phonebook or type “mortgage” into a search engine. You will inevitably pay the price for laziness in the form of excessive fees and or bait-and-switch. Follow others you trust, believe us.

5. Check the Loanzen for similar deals

The Loanzen filter (below the Loanzen grid) allows you to filter based on a number of parameters such as type of loan, amount down and credit score. Looking at other deals will give you a better idea of what you can expect going into the call. Remember, Loanzen is designed to give borrowers an unbiased and transparent view of mortgage deals.

***Do not let the broker or loan officer tell you they won’t be able to help you without a full application. Fire back with, “I am not looking for an exact rate and fee. I want to know going in an estimate. If you can’t give me that much than we can’t move forward.