My New Blog

Tips for rate shopping

April 10th, 2023 6:47 PM by Sam Kader

Monitoring for mortgage rate movement can be quite a chore even for professionals. Rate shopping must be done the same day in order to compare apples-to-apples. Even then, there can still be significant changes and discrepancies for the following reasons: 

  1.  You are looking at rate information that is more than a few hours old. Even worse if you are comparing it in different days. 
  2.   You are quoted a rate from a specific lender for a specific loan program and you are comparing it with  a different loan program. For example, you are quoted FNMA Homeready and comparing it to Conventional Mortgage. They are 2 different loan programs. 
  3.   You are quoted a rate with discount points and comparing it with a rate without discount points. 
  4.   You are quoted a rate for a specific loan scenario that involves Loan Level Pricing Adjustments (LLPAs) imposed by FNMA or FHLMC based on certain loan characteristics. 

Rate shopping must be done in the same day with the same loan program for similar loan scenario across the board with all lenders.  Rate quotes would be inaccurate if it's missing any of the above mentioned elements.  It's like you are comparing apples and oranges now. 

These are variables that you must provide equally to all lenders: 

  1.   What is your FICO score? 
  2.   What is your price range that you are looking  to buy? 
  3.   How much do you have for down payment? 
  4.   Are you buying a Single Family Home or a Condo? 
  5.   Are you buying a Primary Home, Second Home or an Investment Property?  

Some lenders will issue your Pre-Approval letter at this point. However, at Pacific Coast Financial LLC,  - we will request for further documentation to firm-up your rate-quote and to obtain Automatic Underwriting Approval (AUS) system before we issue our Pre-Approval Letter.  We will also recommend that you started our secure online loan application here



My Favorite Blogs:

Sites That Link to This Blog:


Pacific Coast Financial LLC

Lic# MB 78982

2150 N. 107th Street Suite 170
Seattle, WA 98133