If you believe that low rates are the most important consideration when choosing a home loan in Tucson, you may be right. However, the rate is not the only consideration to be made. Finding the right home loan for your family means finding the best quotes, but you should also find a lender who can close on time and at the expected interest rate.
Missed the Closing? That’ll Cost You
When you are buying a Home, you and your lender must meet some important deadlines. The home’s seller should know that your credit is approved within days of escrow opening. As long as the property is approved, you can close the loan and finalize the purchase. The next deadline to be met is finishing the appraisal and getting the property inspected and approved, followed by preparation of loan documents and funding of the loan. Missing any of these targets can put you ‘out of contract’, and you could lose your money, be assessed penalties–or even lose the home. Being forced out of contract puts you at the seller’s mercy, which is an expensive place to be.
Missing the Rate Lock is Expensive
If the lender does not close your loan before the rate lock expires, you may pay a significantly higher amount. For instance, if you lock in a rate for thirty days, and your underwriter fails to review your paperwork during that time, you may have to pay more points to get the old rate. Some lenders are better at on-time closings than others are, and some have a reputation for being slow-moving. Choose the wrong lender, and you’ll pay in more ways than one.
Rate Quote Accuracy
When you are comparing rate quotes, you may get a worksheet or a good faith estimate. Either is acceptable, but the good faith estimate requires the lender to honor the disclosed fees. If loan rates are the only consideration you’re making, you can’t really choose based on that unless you are sure that the published rate applies to your situation. To get the most reliable quote, you have to give lenders info on your down payment, the property and your credit.
