Looking beyond the interest rate and reading the fine print before signing on the dotted line can be financially advantageous as the true cost can differ due to varying lender fees.
“Just because Lender A and Lender B are both offering the same interest rate, it does not necessarily mean that both mortgages will actually cost you the same in the long run because different lenders charge different fees and these can add up quickly,” said Rick Piette of Premier Mortgage Lending.
“To get a better idea of which loan is a better deal, look beyond the interest rate and find out what’s known as the APR or the ‘annual percentage rate’ because the APR includes these various lender fees. Making an informed choice can literally save you thousands of dollars.”
According to Piette, the most efficient way to shop around for a mortgage is to meet with an experienced full-service lender or broker that offers a wide variety of lending programs. Full-service lenders like Southern Nevada-based Premier Mortgage Lending is not connected to a specific bank and can connect potential borrowers to different lending institutions, which helps ensure that they find the lowest-cost program for which they are qualified.
“Hundreds of Southern Nevadans are discovering that Premier Mortgage Lending can connect them to ‘no fee’ conventional mortgages with low APRs for both home purchases and refinancing,” Piette said. “Earlier in October, one of our clients saved almost $7,000 on mortgage fees by choosing us over another lender. Why would anyone want to pay thousands more for a mortgage, when you don’t have to?”
Piette explained that some mortgage fees are the same, regardless of the lender, like sales tax based on the home’s purchase price and recording fees. Home inspection fees are competitive among companies. However, other lender-determined fees can vary greatly.
“So, what does all this mean to home buyers? It means that now, more than ever, you should shop around for a home mortgage with a variety of lenders and consider working directly with mortgage brokers. Seeking out a mortgage broker like Premier Mortgage Lending can help you uncover the best deal because brokers must offer borrowers the lowest possible interest rate and fees for which they qualify,” Piette said.
“Mortgage brokers are now federally regulated in what they can charge borrowers in total compensation, but the mortgage banks, through the use of secondary market profits, have no limits on what they can charge. This gives us brokers a tremendous competitive advantage when pricing your loans.”
The first step to take in “shopping around” and determining one’s mortgage program is to meet with a full-service lender and go through the mortgage prequalification process. During this process, prospective borrowers learn about the mortgage programs for which they may be eligible, the amount that they can borrow, and the out-of-pocket and overall costs associated with different mortgage programs.
“Because our hands are not tied to only one bank’s programs, we help you shop around for the best deal on the best program that fits your individual needs, some of which have no fees. Whether you are looking for a conventional or jumbo loan, or are interested in FHA and VA programs, we can help,” Piette explained.
“Even if you’ve experienced a recent short sale or foreclosure you may still be able to purchase a home because of newer lending programs like Premier’s www.AnotherChanceNevada loan program which offers credit-challenged borrowers a second chance at buying a home.”
For additional information or to schedule an appointment for mortgage prequalification or refinancing, call Premier Mortgage Lending at 702-485-6600 or visit www.AnotherChanceNevada.com.
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.