There are many reasons to shop around for loans in Las Vegas. When you’re looking for loans, you might think it’s too much of an effort to apply for multiple loans, but the positive aspects of searching for a loan outweigh the negatives.
Here are just a few of the benefits you’ll get by shopping for a home loan:
- Ever-changing rates
- Interest rates can increase
- No credit impact
- Different fees
One advantage of shopping around for a home loan is that interest rates fluctuate. Additionally, you might hear different things from others about interest rate trends. Interest rates can stay the same, but they can also rise or sometimes even fall over time. What’s even more confusing is that some people will tell you interest rates are rising, while others say they’re stagnant or even at historic lows! No matter what you hear from others, the reality is that interest rates are constantly changing, and it can be very difficult to know what interest rates will be in the future. Since interest rates are subject to change, your best chance of getting a lower interest rate is to buy a home loan at a time when interest rates are low. Even if it means you’ll need to wait a bit longer to get a loan, your wait is worthwhile, as getting a lower interest rate means that you will be paying less for your loan over time.
Another reason to shop around for loans is that Las Vegas mortgage rates can add up over time. The change in interest rates that you see might seem insignificant, as interest rates rarely change more than a fraction of a percentage point. However, even though that chance may seem insignificant at the time when you’re buying a loan, those fluctuations can add up. First-time home buyers are especially prone to fall for the fact that interest rates add up more than they appear to do. To put numbers into perspective, a half-point change, or less, on your interest rate can amount to a difference of thousands of dollars over the course of your loan’s term.
No Credit Impact
Unlike other financial inquiries that you make, shopping around for a mortgage rate will not impact your credit rating. Now, all three of the major credit bureaus in the US treat mortgage inquiries as just one inquiry, even if you make more than one. Historically, they treated each mortgage inquiry as separate. The catch is that all inquiries must be made within a certain period of time, which is typically 30-45 days. That number varies based on the credit bureau.
Another consideration when you’re getting a mortgage is that there are certain fees associated with it. The fees that you’ll have are usually points and origination fees. Origination fees are fees that cover the costs associated with closing your loan, which may include compensating the loan officer. As with any industry, it’s good to keep in mind that lenders vary in their fee structure. Points are optional, and you might even be able to negotiate with your lender to have some fees discounted or waived. If you shop around for a mortgage, you’ll find the fee structure that is right for you and your personal home ownership circumstances.