Often a client will start a mortgage loan conversation with, “I need to get the best rates.” And that often confuses me. What does the “best rates” mean? Does that mean you won’t work with a lender who doesn’t have the very lowest interest rate on the day you are ready to lock-in an interest rate? Does it mean you won’t give any consideration to experience, execution, responsiveness and delivery?
Would most people work with a mortgage lender willing to lose money? That might get you the “lowest rates” and the “best mortgage terms” around, but a mortgage lender that operates at a loss won’t be around long!
Having the “lowest rates” and the “best service” don’t necessarily go hand in hand. Those two things can be at odds with each other.
What is a consumer to do? Finding balance is always a good thing. Getting competitive terms and excellent service can go hand in hand.
It is best not to treat an expensive and critical transaction like buying a house and getting a mortgage as a commodity. Rather, demand excellent, on time, responsive and accurate service, combined with a competitive price. If you find “the best rate”, consider the other facets of the mortgage loan process that are important to you, regardless of how enticing the potential savings are. Being enticed by “the lowest rate” may have other costs in other ways.