How to Shop for a Mortgage in the Digital Mortgage Era
What if buying a house with home financing was as simple as buying a new computer? It’s quite an investment that can be purchased at many retailers; how do you decide where and what to buy? Much like home financing, there are several factors to consider. We’ll share how to shop for a mortgage, how important your rate truly is and what you might also want to consider before choosing a lender.
How to Shop
When making any purchase, you’re likely going to consider ease, time, and money. You might be thinking: how hard will it be to get the home loan I need? How long will it take? How much of my time am I willing to invest? How much anxiety will I endure? What am I willing to pay to make it easier? At the end of the day, it’s about the entire experience!
Before shopping different retailers, it’s important to determine what your priorities are.
If you value price over ease and are willing to spend more time to get what you want, you’re a bargain hunter. If this is you, we have a few things to share with you: it’s quite difficult to get the “best” rate. To be completely transparent and honest about the mortgage industry, you must know that pricing doesn’t vary widely amongst competitive lenders. The same goes for computers. All computers are around the same price, but different retailers offer different bonuses, products and service.
There are lenders that focus on more difficult transactions and offer higher rates but in the prime credit market, the rate difference between competitive lenders on a $500,000 loan will typically correlate to monthly payments that are all roughly within $100 of each other. (Assuming .25% rate differential)
Price used to be the only factor of home financing you could control, but because of the technology and process advancement the mortgage industry is going through, there’s now so much more. And in fact, the lenders with the “lowest rates” are typically the ones that offer the worst experience. It’s the difference between getting an apple or a PC – the interface is quite different and so is the customer experience. The low rate becomes a necessity to offset the stress, anxiety and delays you will suffer as a consumer.
For the folks who put a high price on their time and need a new computer right away, efficiency and speed matter. You might opt to visit the closest location for your purchase or order through an online retailer with overnight shipping instead of spending days looking for the lowest price option. This doesn’t necessarily translate to the best experience, but hey you get what you want, when you need it.
Then there’s those of you who value the entire enchilada: you want the swanky experience of having all the options, ease, speed, and a competitive price. A digital mortgage offers all the above. You order online, pick it up, get it customized to your liking and get expert support if you need. The experience doesn’t end after the transaction, you’re a part of the family when you decide to buy the computer. You have a team of support behind you if something were to go wrong.
If you’re not sure which computer is right for you, experts support you through the entire process of exploring your options, carefully offering tips and tools to make a calculated decision. If you want to have it your way and aren’t willing to sacrifice ease, time, or money to have it exactly the way you imagine, you get to demand a modern process that gives you control over the buying process that makes you feel confident. You deserve control and customization of a seamless transaction.
The Importance of Rate
You don’t necessarily have to spend more to get exactly what you want. Thanks to technology, it’s easier to get a digital mortgage without compromising price. Most lenders offer highly competitive pricing, but the price of your mortgage is determined by so much more. Factors like how quickly you can close, what the lender fees are, whether your lender can help you win a bid in a competitive market, and the amount of your time that is required to complete the transaction, all have an impact on the final economics of the loan. In addition, the loan program and how it is optimized for your unique situation will make all the difference in the world.
It’s no longer just that rate that you control. In fact, when getting a digital mortgage, you have more control than ever before. There are many factors to consider, many of which are often overlooked with low-tech lending. Imagine directing your own transaction from start to finish. Know what you qualify for upfront and gain additional feedback to further optimize your loan. Be prepared with data and insights to make an informed decision. You’re in control of the complete customization of the home financing transaction with a support team behind you at every turn.
The interest rate is still important in determining the price of your home, but it is only one small part. We do recommend addressing the interest rate before locking-in your pricing but do not choose your lender simply by rate. Would you opt for a cheaper computer simply because it is the cheapest, knowing it will not work as quickly, efficiently, or as seamlessly as you need it to? We’ll get into greater detail on what you need to know before you buy next.
Before You Buy
Don’t fall into the trap of running to your nearest bank or going with the site with the cheapest rate. Choosing a traditional path could leave you spending much more time, effort, and money; that could end with you nursing a headache. In today’s age of lending, you shouldn’t experience this much struggle.
You should be able to complete your entire transaction in one session with a bottle of bubbly and move into your new home two weeks later. It should be simple. Consider what’s most important to you: time, money or experience? Consider if you’d rather have one small part or all of it.
When you buy an Apple computer, for example, you know you’re getting much more than the product. You’re joining a community, getting expert support, and you’ve invested in a simplified platform. Home financing is becoming a similarly niche area as home buyers are finding significant differences between lenders.
Seek out a lender who offers an interactive platform with instant feedback in a quick, efficient way that provides you with the resources and control necessary to experience the simplest, least time sensitive and most cost-effective outcome.
Let It Be Neat & Simple
Shopping for a mortgage is no longer a one-dimensional quest for who can quote you the lowest rate. With the advent of digital mortgages, one in which the entire process is improved through technology and intuitive algorithms, paired with expert support, you are in control of more factors than rate. That’s the kind of control you want when making a purchase as big as a home!
Therefore, timeline, execution, speed, and control are all important aspects of the home buying experience that vary greatly between lenders. That’s why we recommend deciding what your priorities are, assessing your needs, and demanding control of the transaction to ensure your money is properly leveraged. In short, interest rate is important, but not as important as many consumers still think it is. We believe in getting the best of the best at every step, not just in your rate. Have questions? Call us at 1-888-210-5232.