When you spend time and effort getting mortgage rate quotes from lenders it’s not exactly a fun thing. In fact, it can be compared to a trip to the dentist to get a tooth pulled. Well, maybe not getting a tooth pulled but close. At least you’re in the dentist’s office. Or so it seems. Lenders use different terminology, quote different fees and different rates. But when lenders do quote rates in print, online or any other media they’re required to follow certain rules. Advertised rate quotes must include:
- The Annual Percentage Rate,or APR
- The Loan Amount Used in the Ad
- The Note Rate and Term of the Loan
There, that clears it up, doesn’t it? No? But what’s more important with any rate quote is the Big Print. No lender will guarantee any rate quote without a completed loan application, a credit report, verified income and asset documentation as well as a thorough review of an appraisal.
So unless you do have your loan application completed, verified and at your lender, the interest rate quoted may be no good. The small print is fine. But pay attention to the Big Print.