Mortgage Quotes
When shopping for a new home it’s important to collect a number of mortgage quotes. Mortgage quotes are preliminary answers to the question, “What kind of deal can you give me on a mortgage?” By “deal” one generally means “interest rate,” since the amount and term of the desired loan remain the same, usually. Collecting a dozen or so home mortgage rate quotes gives you a feel for the market and a better idea of how much home you can afford. There are several ways to get a mortgage rate quote.
The pre-Internet way is to go to a bank; wait for a representative to assist you; fill out the tedious forms that they call “assistance”; go home and wait for someone to call you with a quote. In some cases, banks won’t give you a home mortgage loan quote over the phone; they want you in their clutches where they can work on you to close the deal. Then you have to drive back to the bank and wait for a representative to be free to work you over. If you want a number of mortgage loan quotes you need full tank of gas and several fresh pens. Few people do it that way these days.
First, one bank offered a free mortgage rate quote online. Then many followed suit – too many. Consumers were overwhelmed with separate Web sites and quotes in different formats. That created an opportunity for online home mortgage loan quote aggregators, like LendingTree.com.
Aggregators let you enter your personal financial information just once, instead of on every lender’s Web site. Then an aggregator runs your data through many lenders (some of whom say “no” but you don’t have to hear that awful word) and connect you with the lenders who want your business. Obviously, getting an online mortgage loan quote through an aggregator is much pleasanter and more efficient for consumers. It may even save you money.
All those lenders know they are competing against one another for your business, so they tend to sharpen their pencils and give you the lowest mortgage rate quote possible. But be careful; it’s only a quote, not a contract.
Every online mortgage loan quote you get will include a disclaimer that it is “subject to approval… additional information may be required…” and that sort of thing. You will have to talk to a mortgage loan representative, probably by phone, and fill out paperwork. Nothing binds the lender to an online mortgage rate quote.