In today's TL/DR ("To-Long / Don't Read) we summarize a few reasons why you should shop around when seeking a mortgage from a lending institution.
Obviously...the interest rate!
Although the difference between 4.1% and 4.3% may not seem like a lot, think about how many extra hours you would need to work to cover a few thousand $ difference over a few years. Negotiate the interest rate.
Loan Programs
Not all lenders carry the same programs/products. Some programs may even require multiple mortgages and multiple closings which translates into additional closing costs. Really take some time to understand the different programs offered by different lenders.
Underwriting and Appraisals
Ask lenders about their underwriting and appraisal process. Lenders have different monthly debt to income (DTI) ratios. This could mean the difference between and approval and a denial. Check it out. And also ask about the appeal process on appraisals. How long does it take? With home prices on the rise, your appraisal may fall short of the offer price and could kill the deal.
Also keep in mind certain lenders are much more flexible than others. Large banks don't really need your business and are much less responsive where a smaller local broker may be much more flexible and responsive to your needs and that could save your deal!
