Our Credit - Holy Batman!! Are you kidding me?
Want some mortgage money for that final home or an investment property or condo, etc.? Let’s look at the usual contestants and some surprising issues that you should be aware of:
- Your Bank or Credit Union
- A Mortgage Broker (No fee is involved!)
Are you aware that when you go shopping for the best mortgage rate you could be adversely affecting your credit score?
What?? Are you pulling my socks or what?
No. Actually each time you go to a different bank and submit an application to verify your credit, that inquiry gets noted on your credit score, several inquiries and you will invariably affect your credit score adversely.
While we are on this, remember that cute little gal offering you a free set of wrenches for filling out a credit card application at your local building supply store? When that is submitted, it can and usually will adversely affect your credit score. You know what, that is just plain wrong – but its true! So…those wrenches may not come to you without a cost after all. Think about that – hell, maybe you don’t need those wrenches. You can tear your knuckles off with the ones you already have! The free gift in life is seldom free.
If it looks like, quacks like and swims like a duck, it probably is. Who needs another quacking duck, hell most of us are having trouble sleeping already!
But, I digress…..
- Posted Rates: This is a rate set by the banks or other institutions that is usually a rate of two or more percentage points above what they will actually lend money for.
- Preferred Rates/special customer rate, or whatever else they call it. This is usually a rate a percentage point or more below the posted rate.
- Street Level/Street Competition or best local rate.
This is usually lower than 1 or 2 and is the usual best rate that the aggressive members in the loan business are allowing their money to be released at. This is where you want to be!! This is where being #1 or #2 is not as good as being #3.
At the bank or credit union, you are a customer and the shareholders are the clients.
At a mortgage broker, you are the client and the 20-30 institutions or more that they can access funds from are the customers.
So…you win…without all the shopping…and one credit application to the mortgage broker can be used with all of the money providers services they can access funds through so…no adverse credit downsides on your score and no fee is charged to you – it’s collected by the mortgage broker from the institution you select!
And, finally, it seems to me at least that if your bank has not quoted you the “street level” rate from the beginning, they don’t deserve the right to “meet and match” the street level rate you have now available.
At least to me, that’s how I see it.
We are seniors! We rock! We have paid our dues – we deserve the lowest rate we can negotiate.
Hey Batman!! Can I ride in your car? I love the big fins!