The mortgage business is lucrative. It's also competitive. A lot of websites try to get some of the mortgage pie. You can get online mortgage quotes from 4 types of mortgage websites:
The first two are composed of companies that do business online only and companies that do business online and offline. They either give out mortgage loans or broker them. The third and fourth type do nothing but lead generation or rents ad space.
The above seems to mean that there are several types of online mortgage quotes. However, in practice, all the outfits do the same thing: they publish the best mortgage rates they have or the companies they do lead generation for have. The reason: all online mortgage quotes serve the same purpose: reel you in.
Direct lenders (your bank, your millionnaire uncle) have the fewest choices. For obvious reasons, they only advertise their own rates. Those rates can be quite high compared to what you can get somewhere else. Mortgage brokers work with many lenders. One of which might have very low rates. Which, however, are for a program for which you do not qualify. They can still use them to reel you in.
Lead generation companies act just like mortgage brokers. Except that when they get your information they don't try to get you to come in, provide additional information so they can qualify you for a mortgage. Instead, they sell your information to several lenders. Some or all of those will contact you. The one with the best rate, the one quoted, might not be among those who contact you.
Affiliate marketers get a few dollars every time they send your information to a lead-generation company. They don't even look at your information.
So, here's the way to think about online mortgage rate quotes: They're bait. That means you don't fully expect to get the advertised rate unless you have perfect everything. Still, often the one with the lowest advertised rate can get you the lowest mortgage. But not always. So you contact a bunch of them.
You really know what mortgage rate you qualify for only after they run credit check. Without credit check, you may be getting a far rosier mortgage quote than you really qualify for.
If your credit score or work history are not great, mortgage brokers are the way to go. For two reasons.
1. They have access to more mortgage programs than do direct lenders (whether banks or investors doesn't matter).
2. They get mortgages at wholesale rates. Your bank, or other direct lender, will be selling them to you at retail price. It happens often that your bank has a retail mortgage center (the loan officer where you actually bank) and a wholesale center. You would get a quote of 6%, a mortgage broker, on the same day, could get, at least some times, 5.75%. Yes, from your bank.
So, don't let the number of online mortgage quotes sources bother you. Shop around, and understand that the online mortgage quotes are bait and that mortgage brokers are often the best source. You still have to sort through them to get a good one.
Author Resource:
Finding yourself Googling "Chicago mortgage ," "Chicago mortgage rates " and such things? To get the best mortgage, contact several mortgage borkers or lenders, at about the same time, give them the same information. If you contact some on Monday morning, some on Monday evening, some on Tuesdays, you're not comparing apples to apples.
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