Whenever I give a client a free rate quote I am quoting the lowest possible rate available for the program that best benefits my client on the day that I am quoting. Clients must always understand though that a rate cannot be guaranteed until it is locked by the lender. this applies to anyone who quotes you a rate - it must be locked to be valid.
When comparing rate quotes make sure you consider the fees. Sometimes the fees involved in a loan will make one interest rate more attractive even if its higher.
Some of the things that you will need for an accurate quote are; a snapshot your credit history; whether you have had any bankruptcies or foreclosures in the past; what your gross income per year/month is; if you are obligated to pay child support; if you are w-2, 1099 or a self employed; the amount of your total debt payments per month; the value of your home or the purchase price of your target property; how much you currently owe or the amount you want to borrow; the type of property; whether it will be your primary residence. After answering some of these questions we will be able to give you a more accurate rate quote.
If you get multiple quotes try and get the all on the same day, interest rates can vary from one day to the next.
Be sure to provide accurate responses and information when requesting a rate quote. Rate quotes are only as good as the accuracy of the information used to qualify for the loan.
With your quote for a rate you should also get a quote for the APR and get a copy of a Good Faith Estimate (GFE) for closing costs. Interest rate alone is not sufficient to determine whether one is getting a good loan.
When quoting interest rates, mortgage professionals may give quotes orally over the telephone, or they may put the quotes in writing. Whether in writing or orally, an interest rate quote is only a quote. It is not guaranteed until rate locked. Only when the loan application is in the bank's system can the rate be locked.
If taking someone at their word makes you nervous, ask for a Good Faith Estimate.
Interest rates are dependent on the level of inherent risks the lender banks are taking in granting mortgage loans. The more income and asset documents one can supply, the lower the interest rate will be. For this reason, when getting rate quotes from multiple mortgage brokers and banks, be sure to furnish the same and true information. Telling one broker that the application will be full-documentation and another that it will be a no-documentation loan will result in significantly different interest rate quotes.