In many cases, don't we want the best deals? I think when most people begin to shop for a home or shop for a mortgage, wanting a good deal or the best deal is on many buyer's or seller's minds. And when getting a great rate, some people like to brag about it. But are the details distorted? Not known?
One key point to remember through this whole post, Not one borrower is the same. One needs to compare apples to apples. Just a lower credit score could change the whole scope of someones interest rate. And just because two apples may look the same, doesn't mean they taste the same or feel the same.
How many times did someone say these key phrases when it came to mortgages and or real estate……….
“Well, my neighbor sold their house for $325,000 and I should be able to get the same since we have a similar house.”
Okay, so let’s look at the differences.
- Does your house have upgrades?
- Is one lot larger than the other?
- Is one house in average condition and the other in excellent condition?
- Does one have a superior view than the other?
- How long ago was that sale? 3 months ago? Values can change…
“My co-worker just got a 4.50% interest rate with no points and I know it’s still out there, so I want that.”
How could this be so different for so many? I’ll name just a few reasons why.
- Did you see the good faith estimate? It could have many fees on it. You need to compare apples to apples.
- What was your co-worker’s credit scores? Right now, the biggest reason why your interest rate would be different from someone else.
- How much money are they putting down?
- What kind of mortgage are they getting? FHA loan, conventional loan, VA loan, or a USDA loan?
- What was their debt-to-income ratios for qualifying with income?
Another key point? "interest rates change daily" and "home values can change".
Summary : There is not one person who has the same fingerprint. This can be the same for those selling homes or trying to buy one or refinance one. Not one home is exactly the same. Not one borrower is exactly the same. What you need to do is be able to pick a real professional and not a wanna be. Please read : Are you begging me to lie to you?
Overall, there are too many variables when selling homes, buying homes, or trying to obtain financing for these homes. This is more true in today’s market, considering the major changes that have taken place. You have a friend or family member in the business? This doesn’t even mean that you will get the best deal. Besides, define best, it might not be the same with your friends or family member. And what about this part… did your friend or neighbor leave something out? How do you know. Did they pay extra somewhere else? Keep in mind, not everyone is upfront and or ethical.
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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc