Since the financial crisis of 2008, The federal government created regulations to limit the commission structure of loan officers.
Loan officers are sales people, and in the old system, they were given higher commissions depending on the interest rates they charged. This created an unequal treatment of customers.
Nowadays, loan officers receive the same commissions regardless of what rates or fees are charged.
So how can you get the Best Deal?
Well, the best deal is not always the lowest interest rates. A lower interest rate may save you a few bucks every month, but what good is a low rate if your lender can’t get you a loan. The following is how to get the best deal and lowest interest rate.
Shop around. Make sure to do your research.
- Find a local lender in your neighborhood that knows the local market.
- Ask a reputable REALTOR. They want your loan to close as much as you do, so they will recommend lenders that can get the job done.
Way to lower your interest rate.
- Credit Score of at least 740
- Up to date Taxes
- 2 Years work history
- Low monthly debt
- The downpayment of at least 20%
- Go from a 30 year fixed to 15 year fixed
Keep in mind the ultimate goal is to find someone to help you through the buying process, to make it as simple as possible, and to get you the best deal.
I’m always happy to answer questions free of charge and with no obligation. – James Red, REALTOR