People call me up all the time asking for an interest rate. When I try to provide these callers with an aswer by asking them a couple of questions some of these callers get irrate. They are only calling to get a rate. They do not want to provide me with personal information. Fair enough but I can not quote a rate that will be meaningful to these callers without getting some background information. I can not provide these callers with a written Good Faith Estimate without some information from them.

I am not in charge of the rates. The lenders are. The lenders have conditions in order to get certain rates For example a credit score of 700 will give you a different rate than a credit score of 590.

If you are willing to provide me with the information I need I will provide you with a written Good Faith Estimate.

I have found this article that will explain this in more detail.

Mortgage Rates and Pricing
Shopping for Rates

by Terry Light and RealEstate ABC

All the "experts" tell you to "shop for rates" -- but they don't tell you how to shop for rates. Without an understanding of how loans are priced and lock-in periods, calling up a lender to find out their interest rate could provide you with mostly useless information.

If you simply call up and ask for interest rates, a lender can tell you anything. One lender may quote a "floating" rate (seven or twelve day lock) and another may quote you a forty-five day lock. Another lender may quote you the rate for two points and another may quote you the rate for one point. If you call lenders on different days, you could get widely different quotes because rates don't stay the same every day.

That isn't shopping for interest rates.

When you call a lender to shop for rates, you have to know at least two things: how many points you want to pay and how long you want to lock in the rate. You don't have to really intend to lock in the rate, but you have to give them all the same parameters so that you get meaningful quotes. You also have to get your quotes all on the same day.

By the way, you can't trust ads in the newspaper, on the radio or on television. Ads are generally placed at least a day in advance. Since rates change every day, ad quotes aren't reliable.

Is the Quote Reliable?
Lenders know when you're just calling up to get a rate quote. They know you are calling up their competitors. When you ask for a rate quote for a specific lock-in period paying a specific amount of points, most lenders will give you a reliable quote. But you're applying pressure for a great quote. You let the loan officer know you're "shopping around." You want the "best deal."

What do you think happens?

At least one loan officer will lie to you. If he doesn't fudge the rate, he doesn't have a shot at your loan because someone else will lie to you. Plus, you can't check anywhere to see if he is telling the truth. You're not likely to immediately fill out an application and lock in the false rate you were quoted. You're going to keep calling around and shopping and maybe tomorrow you'll call back whoever gave you the best quote.

Truthful, ethical loan officers will not get your loan. Truthful, ethical lenders need additional information in order to give you a rate that wil apply. Truthful, ethical lenders will give you a Good Faith Estimate.

By the time you are ready to really lock in your interest rate, you'll be quoted accurately -- or maybe not. If someone would lie to you to get the loan, they aren't ethical. They may jack up your rate at the end of the deal when your options are limited. You probably won't even realize he's doing it because you aren't shopping interest rates anymore.

How to Really Shop for a Lender
Do it properly, telling the lenders how much you are willing to pay in points and how long you want to lock in the rate. Allow them to check your credit history. Tell the lender you have already filled out an application and that you are willing to fax it in, so the rate has to be something he can deliver. Ask for a Good Faith Estimate.

Get the best quote under those conditions,. If you have a referral then call the lender who was referred to you. Tell him what you found out and he will tell you if it is real or not -- and whether he will match it.

Then you choose your lender.

Please call me with all your mortgage needs.

Arnold Cohen
The Mortgage Store
303-488-5435

I'm in your nieghborhood.