The Other Reason You Should Shop Around for Your Mortgage
I
know,
I
know,
mortgage
shopping
is
the
worst.
It’s
not
a
fun
thing
to
do.
It’s
not
like
shopping
for
a
new
car
or
a
new
TV,
or
even
a
new
house.
But
it’s
a
necessary
evil
unless
you’ve
got
a
boatload
of
cash.
The
reason
it’s
not
fun
is
because
there’s
lot
of
math,
paperwork,
and
high-pressure
salespeople
involved.
Not
to
mention
lots
of
mortgage
lingo
that
will
likely
go
over
your
head.
But
there’s
a
silver
lining
to
putting
in
all
that
time
to
shop;
you’ll
learn
a
lot
about
mortgages.
I
Get
It,
Mortgages
Aren’t
Fun
Look,
I’ll
be
the
first
person
to
tell
you
that
mortgages
are
boring
af.
I’ve
been
writing
about
them
for
nearly
20
years
now.
And
before
that,
I
was
working
on
the
frontlines
with
mortgage
brokers
and
loan
processors
and
underwriters.
None
of
it
was
fun,
and
it’s
probably
even
less
fun
when
you’re
new
to
it
and
simply
trying
to
get
through
it.
Conversely,
you
might
have
a
blast
shopping
for
a
new
car
and
doing
test
drives
while
checking
out
all
the
cool
features.
The
same
goes
for
new
clothes,
a
new
TV,
computer,
etc.
They
call
it
retail
therapy
for
a
reason.
I’ve
never
heard
anyone
say
mortgage
shopping
is
therapeutic.
In
fact,
it’s
usually
the
exact
opposite.
Typically,
people
say
they’d
rather
go
to
the
dentist
than
go
through
the
mortgage
process.
Okay,
so
what’s
the
point
here?
Well,
as
mentioned,
you
can
learn
a
lot
if
you
do
shop
around.
Learn
About
Mortgages
as
You
Shop
Your
Rate
Most
people
don’t
shop
around
for
their
home
loan.
They
either
just
go
with
the
lender
their
real
estate
recommended,
or
the
first
quote
they
come
across.
Again,
this
is
because
mortgages
are
not
at
all
fun.
And
not
getting
any
funner.
Not
only
does
this
cost
people
(since
studies
prove
multiple
quotes
leads
to
lower
rates),
it
also
means
you
won’t
learn
a
whole
lot.
Again,
I
understand.
Most
people
are
literally
just
trying
to
get
through
it
so
they
can
move
into
their
new
home.
Or
enjoy
a
new
low
rate
on
their
existing
mortgage
in
the
case
of
a
refinance.
But
aside
from
potentially
paying
more,
you’ll
also
learn
less.
And
when
you
know
less
about
something,
the
probability
of
a
bad
decision
increases.
For
example,
you
might
pick
the
wrong
mortgage
product
for
your
individual
situation.
Or
you
might
be
told
to
pay
discount
points
at
closing,
only
to
sell
your
home
or
refinance
before
the
breakeven
period.
You
might
even
refinance
even
when
it
doesn’t
make
sense
to
do
so.
Or
buy
too
much
house
and
become
house
poor
because
the
numbers
were
only
presented
to
you
one
way.
Bringing
it
full
circle,
you
might
also
get
ripped
off
because
you’ll
be
a
novice
and
more
easily
taken
advantage
of.
If
you
actually
make
a
few
phone
calls
and
speak
to
multiple
loan
officers,
mortgage
brokers,
etc.,
you’ll
learn
more
about
the
ins
and
outs
of
it
all.
Each
time
you
talk
to
someone
new
you’ll
have
a
little
bit
more
knowledge
than
the
prior
call.
And
this
will
help
you
avoid
the
typical
gotchas
and
perhaps
allow
you
to
come
off
more
confident.
That
can
lead
to
better
mortgage
rate
negotiating
and
ultimately
better
odds
of
a
lower
rate.
Here
Are
Some
Mortgage
Shopping
Tips
to
Make
It
Less
Awful
If
you’re
stressed
about
it
your
credit
scores,
keep
in
mind
that
while
mortgage
inquiries
can
lower
your
credit
score,
it’s
often
not
by
much.
You
also
don’t
need
to
let
everyone
run
your
credit.
And
FICO
now
combines
multiple
mortgage
inquiries
into
one
when
made
within
a
14-
to
45-day
window.
Those
who
have
heard
of
those
annoying
trigger
leads
can
employ
a
strategy
I
laid
out
years
ago.
Use
a
temporary
phone
number
like
Google
Voice
for
free.
Share
that
number
with
all
the
lenders,
brokers,
etc.
Then
ditch
it
once
you’ve
found
your
match
and
carry
on
with
your
real
number.
Or
just
keep
using
the
temporary
one!
Even
if
you
use
a
mortgage
broker,
take
the
time
to
compare
mortgage
brokers
too.
Because
many
of
them
just
send
all
their
business
to
one
lender.
So
it’s
not
really
shopping
around.
In
addition,
they
have
varying
compensation
structures,
meaning
if
you
compare
more
than
one
you
might
land
on
the
broker
who
earns
less
per
loan
and
saves
you
money.
For
example,
one
broker
might
earn
2%
on
each
loan,
while
another
is
satisfied
with
just
1%
loan
origination
fee
in
exchange
for
more
volume.
The
broker
earning
less
will
likely
have
the
lower
rate
and
closing
costs.
Lastly,
if
you
already
have
average
or
poor
credit,
know
that
mortgage
rates
can
vary
even
more,
so
shopping
around
is
even
more
important!
Simply
put,
rates
are
priced
in
a
tighter
range
for
those
with
really
high
FICO
scores.
But
even
those
folks
should
also
gather
more
than
one
quote!
Read
on:
How
to
shop
for
a
mortgage.
(photo:
Alan
Levine)
creating
this
site,
I
worked
as
an
account
executive
for
a
wholesale
mortgage
lender
in
Los
Angeles.
My
hands-on
experience
in
the
early
2000s
inspired
me
to
begin
writing
about
mortgages
18
years
ago
to
help
prospective
(and
existing)
home
buyers
better
navigate
the
home
loan
process.
Follow
me
on
for
hot
takes.
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