Studies have shown that consumers who obtain several quotes from competing mortgage lenders get better deals on their home loans and save thousands. Whether you contact lenders in person, by telephone, or online, get at least four quotes in writing and compare them to get a competitive deal. It’s important that you obtain your quotes as simultaneously as possible, because rates change continuously, often several times a day.
The interest rate, annual percentage rate (APR), costs and loan features should be prominently displayed in writing on your quotes. No lender is obligated to honor a quote, however, unless it puts it on a Good Faith Estimate, or GFE – a worksheet or scenario does not carry the same consumer protection. Once you actually apply for a loan, the lender must issue a GFE within three business days.