Friendly reminder: Shop around for rates / points when financing

[Kuriakos Mellos]

One of my first mistakes in the process of learning about banks/financing and getting mortgages was the whole concept of shopping around.  I think I was nervous about the 'dautning' task of getting financing, and when I was approved by a certain lender - I didn't bother going anywhere else. (Which I could of easily).  

Remember - lenders in many cases are like sales people - (nothing wrong with pushing a sale! I am work in sales at my W2 job) but their incentive is to close a loan.  Taking a step back and seeing what other options are out there can not only save you money up front, but over the life of a loan.    Once you get your credit pulled for any real estate sort of transaction (refinance, new purchase etc) - you can go talk to other lenders WITHOUT any major impact on your score.  

Now, don't go crazy and overload your self with info - but targeting a few banks/credit unions etc to talk with ( and trust me they will talk) - can be super advantageous.   Ask for a cost analysis break down, get an email quote - leverage that against other banks - and eventually you start building a 'team' that you see has your best interest in place and will work with you to get the best desired end goal.  I have used the big lenders, local lenders, and most recently a local broker to help secure loans - all with different approaches.  It was not until a recent refinance that I found the power of 'calling out' people for not matching other quotes.  1 point saved on a $100,000 mortgage is $1,000 saved off the bat for closing costs - a .25 lower percentage point on a loan can equate to thousands saved over the life of a loan. 

Shop around, it might take a little bit more organization, time and negotiating on your end but will only help you out in your journey!

K-Man