When applying for a mortgage, many borrowers are left confused about approaching the process effectively. But Better Rate Mortgage can help!
There are many different factors to consider when deciding which lender to sign the agreement with, and most of these factors, particularly the rate, will become visible through the quote.
The quote you receive from a lender estimates how much you will end up paying each month back to the lender. The mortgage rates are dependent on the mortgage-backed securities (MBS), which are bonds sold and bought on Wall Street. Because of that, they can rise when bond prices drop, and they can drop when bond prices rise. But when you’re shopping around for a mortgage, how many quotes are enough?
You Should Get as Many As Possible
Just like when you shop for any other product, it’s important to be careful and see what the market has to offer, compare the quotes from multiple lenders, and see which one is the most advantageous for your situation.
For example, you want to renovate your bathroom and have a specific budget to work with. You then start to look into renovation companies that could do the job you want within your budget, so you contact them and ask for a quote.
Then, you compare the quotes from all the companies you’ve talked to. Some have a higher estimate that might exceed your budget, but that company may have additional services offered in that quote others don’t have. Or, one company could have a better reputation or be more experienced in the type of tasks you need to renovate your bathroom.
It’s not that different when it comes to applying to a lender. These financial institutions each have their reputations, fees, and approach to handling the process, and the quote is simply one of the many steps you’ll have to take to compare them until you can find the lender who can offer you the best deal.
How the Better Rate Mortgage Makes it Easy
We can help streamline the application process for you to help you get the funding you need. The FHA, or the Federal Housing Administration, is not a lending institution. What they do instead is provide insurance to lenders who are willing to grant mortgages to high-risk buyers. This gives a St. Louis resident with a below-average credit score the opportunity to own their own home.
The Better Rate Mortgage team specializes in making the home purchase or refinance process a great experience, whether your first purchase, your 10th, or needing assistance with the FHA 203k or Fannie Mae. Whatever you need, whatever you’re dreaming about, we make it happen!