Lenders frequently use considerably different methods to quote their interest rates to the public and Realtors. In an attempt to have the lowest rate, some lenders charge excessive processing and closing fees which are not discuss when you call to compare their rates. Many lenders quote a non-"locked" loan rate (or current daily rate) which is available at a lower cost than a 30 or 60 day "locked" rate. Both Realtors® and borrowers believe they are being quoted a 30-day or 60- day "lock" rate when they receive a lender quote. (Non-"locked" or current day rates are the rates the lender would give you if the loan closed on the day you received the quote.)

Since loans cannot be processed in one day, you will typically need to consider "locking" your interest rate through the loan processing time of 30 to 60 days. Therefore, be sure to ask if the quote provided includes an interest rate and discount points guaranteed "lock" period of 30 or 60 days.  Your interest rate "lock" period should extend to at least a few days past your contract closing date.

The best way to shop for a new loan is by asking each lender to provide you with the annual percentage rate (APR) for the specific loan.  The APR rate levels the playing field because it reveals the actual (or total) yield to the lender. It includes the note interest rate, discount points, and all the miscellaneous lender fees that they don´t like to talk about. The APR rate is the bottom line lender yield stated as a percentage that is very easy for you to compare.  We help our clients find lenders who have the lowest APR rates as well as "lock" periods which best fit contract closing time frames.