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A Costly Mistake People Make When Shopping Their Mortgage

August 21, 2011

The majority of mortgage shoppers make this mistake when they need a mortgage. They only make one call and that’s to their existing bank.

Not only is this a needless hassle, it is a waste of your time and potentially a costly mistake!

You could end up with a HIGHER interest rate if you are only talking to your bank. How will you ever know? Besides negotiating, which is a hassle when dealing with a billion dollar bank, there is another problem. You will miss out on all the other options that are available to you in the market. If you only talk to one bank, you will never know if you got the BEST mortgage rate, terms and conditions that are right for you. If one bank had everything for you, there wouldn’t be more than 25 other lenders in the market willing to fight for your business. Remember:

  1. One bank has one interest rate policy and it may not be the best one out there.
  2. One bank may not offer maximum DISCOUNTS off all their mortgage rates and terms.
  3. One bank has one interest rate guarantee – rate hold – and their interest rate guarantee may not be long enough to protect you.
  4. One bank has only 2 or 3 mortgage options.
  5. One banker may unnecessarily turn you down for your mortgage.
  6. One banker may make you negotiate and change your other bank business for their best interest rate.
  7. One bank has only one prepayment policy.
  8. One bank may recommend a mortgage that is best for them, NOT YOU One bank will always CROSS SELL you their other banking service (which you likely don’t want or need). They just don’t want your mortgage. In fact, it is MORE important and profitable to them that you become a full banking customer.

Remember to get the facts that your bank won’t tell you and learn what mortgage rates, terms and conditions other lenders are willing to offer you. It will save you thousands of dollars over the life of your mortgage.