Wednesday, April 29, 2015

North Shore Homebuyers Should Shop Around for Mortgage Rates This Year

Just as it would in any other purchase scenario on the North Shore, shopping around can be a major benefit to today's homebuyers.

Home prices and sales are rising and as a result, the real estate market is getting busy and seeing more buyer demand. But that doesn't mean you should rush into a home purchase in Glencoe, Winnetka, Highland Park, Northbrook or Deerfield! Taking the time to research mortgage rates could save you more than you think on your new North Shore home.

Below are some common questions homebuyers on Chicago's North Shore may be wondering about rate shopping this year:

How long should I shop around?
As you know, mortgage rates are known to rise and fall daily and could change as much as .25 in a single day. In order to accurately compare lenders, you need to get quotes from each lender on the same day. Homebuyers will need to gather these rates before making a home offer and if the North Shore seller accepts, you will then choose one.

How do I know if the rate is accurate?
Your comparison of rates should consider the relationship between closing costs and the rate itself. The higher the closing costs, the lower the rate and vice versa. When you receive your rates from lenders, compare the rates with fees and APRs. You won't know which is best until you compare each summary given from each lender and look at these factors.

What happens if rates drop after I lock in my mortgage?
Every lender will have their own policy on how to tackle this subject. Many of them will give you some leeway when re-negotiating a previously locked in rate. For instance, if you just locked in your mortgage at 3.75 and mortgage rates drop to 3.5, the lender may allow you to re-negoiate your rate to 3.625. As you gather quotes, simply ask the lenders about their policy.

With years of experience in all things North Shore real estate, I understand how overwhelming the homebuying process can feel— from home shopping to mortgage rate shopping to home closings. I can recommend area professionals to assist you with rate shopping and am happy to answer any questions about buying a home on the North Shore!

I look forward to hearing from you!

Janie Bress
Your North Shore Real Estate Expert

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