Online mortgage quote: Why You May Not Be Getting The Best Rate
Posted by nick_niesen on October 29th, 2010
While shopping online for online mortgage quote can be great in terms of saving time and convenience, it won?t necessarily get you the best deals available. What you save depends to a great extent on the way you negotiate with lenders for the online mortgage quote. Like with any negotiation, you get the upper hand when you are knowledgeable about how the industry works.
One of the main precautions to take on when looking for online mortgage quotes is to ensure that the brokers you deal with represent several different lending institutes and therefore can offer you a good variety of options. Beware of brokers who are merely lender agents in disguise. If a broker represents only one bank or lender, there is a great likelihood that you will not be offered the online mortgage quote that is most suitable for your needs.
In devising consumer protection laws for online mortgage quotes and increasing convenience, states have ultimately ended up having an adverse impact on competition, apart from making online mortgage costs higher than necessary.
Explaining The Costs
It is mostly the existing brick and mortar mortgage brokers who are the blame for the laws in a bid to minimize competition. The laws have also led to a multi-state licensing system due to which national mortgage firms with a presence in all states get an unfair online advantage over the competition. These companies don?t have to put in money into costly infrastructure apart from enjoying lower transaction costs and can therefore offer lower rates to consumers.
The Bottom Line
The end result is that it is the consumer who is eventually at a disadvantage. Their options are limited further for sources of capital and the competition among lenders is also less intense.Also See: Online Mortgage, Mortgage Quote, Mortgage Quotes, Mortgage Brokers, Online, Mortgage, States
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