How important is the initial interest rate that is quoted by a lender?
All too often borrowers make a quick decision based solely on who quotes the lowest rate. Interest rates vary by the minute with different rates for different programs. Some lenders, for marketing reasons, quote a lower rate and supplement that rate with additional fees and charges. You need to make sure the lender is not lowering one fee while raising another or lowering the rate while increasing the fees. Most borrowers find little difference in fees and rates when dealing with reputable mortgage professionals. Borrowers should always receive a Good Faith Estimate detailing the costs of their loan.
