Da ADR BLOG

To find the best rate, one needs to start with common sense analysis. If you were looking to purchase a new car - would you go to the center of the city you live in and see if there were car dealers in the downtown area? Of course not. Rents are too high there.

Similar to car dealers, big banks have thousands of branches set up all over the city. You get to pay for that. It's called overhead. Greenhouse gas emissions that are unnecessary in my opinion.

Another problem with waltzing into your bank or credit union is that the institution you are speaking with has hired an 18 year old. That's the only current requirement for these "employees". Sometimes they are 1099 contractors. They often times sell only their products (think bank option arms). Well, besides million-dollar a day paychecks....overhead....people that are unlicensed and can't qualify to get a license there's another reason a bank or credit union isn't a good place for a mortgage - they charge a lot more to pay for it all.

So, what about the internet? Should I type in my personal information? Not likely. What about those great rates I see out there. Why can't I get a 30 year fixed at 3%? Simply put, because you'll never get the rates they promise. Those are bogus rates that hook you in.

So, no to banks. No to credit unions. No to the internet. How is one supposed to find a great rate? Simple. Call your local mortgage broker. Make sure you are working with a professional first. Check the loan officer out on the web. Check the company's BBB report. Type in "complaints" and the company or person's name into google. You can even go to www.nmlsconsumeraccess.org to check on your "professional". Of course, this is only a registration system. You will find many 18 year olds here. Banks only have that as their requirement to advise consumers on mortgages. Even if you find your bank LO in this registration system, they still probably aren't licensed. 

Ok, so when you've done your research and determined that you want a 30 year fixed (or 15 year fixed, or 5/1; 7/1 arm) then you should ask for a Good Faith Estimate. Many lenders (banks, companies that have names that sound like the government, etc.) will give you a "estimate of Good Faith" or some other form that sounds good. Without a Good Faith Estimate you are looking at a low ball estimate. At ADRMortgage.com we give only Good Faith Estimates. We don't want to waste your time or give out false information.

Once armed with your GFE's you can now make an informed judgment regarding which company you will select. We had one client call us the day after they closed with America's biggest bank. Yes, one day after spending time and money closing on a purchase the client called us to refinance. Needless to say, they got slammed badly by the bank.

Some banks and credit unions have thousands of foreclosures, as they put people in the wrong mortgage. So, keep your eyes wide open throughout the process. At ADRMortgage.com you'll get several people that help you through the process. We take pride in delivering on our value equation. It's one of the reasons we are a company that has survived without a bailout!

Take care and good luck with finding the best rate you can.