Practice what you learned

Select the advice you feel is best.

Imagine that a friend of yours has started looking for his first mortgage and has asked you for some advice. Decide what you think of his comments and select your response from the options provided – “Good Idea” or “Bad Idea”, and “I agree” or “I disagree.”

“I keep getting emails about no cost loans and really low interest rates but I’m not going to reply.”

You are right. It’s a good idea to ignore lenders and brokers who come looking for you. Some might be trustworthy but the odds are not good.
It’s a good idea to ignore lenders and brokers who come looking for you. Some might be trustworthy but the odds are not good.

“I plan to shop for a mortgage online because the costs are lower, I don’t need advice, and you can’t really trust mortgage people.”

You are right. Mortgages are complicated. It's easy to make mistakes if you don't have an experienced, trustworthy professional on your side. Getting the right mortgage for your needs at a competitive rate will more than make up for the fees you pay. It's a bad idea to try to do it yourself, especially if it's your first mortgage.
Mortgages are complicated. It's easy to make mistakes if you don't have an experienced, trustworthy professional on your side. Getting the right mortgage for your needs at a competitive rate will more than make up for the fees you pay. It's a bad idea to try to do it yourself, especially if it's your first mortgage.

“I’m getting interest rate quotes from 10 lenders per day. When I’ve got 50 quotes I’ll choose the lowest one.”

You are right. It’s not a good idea to call lenders and compare quotes. Rates change frequently so it’s inaccurate to compare quotes from different days, or even hours apart. In addition, quotes given over the phone are unreliable. Finally, you should get a trustworthy professional to help you choose the appropriate type of loan before you start thinking about rates.
It’s not a good idea to call lenders and compare quotes. Rates change frequently so it’s inaccurate to compare quotes from different days, or even hours apart. In addition, quotes given over the phone are unreliable. Finally, you should get a trustworthy professional to help you choose the appropriate type of loan before you start thinking about rates.

“I don’t trust realtors so I’m not going to take their referrals for a mortgage lender.”

You are right to disagree. Realtors are a good source of referrals for mortgage professionals. They are likely to have reliable opinions, and they share a homebuyer’s interest in closing a deal without problems.
You shouldn’t agree with your friend. Realtors are a good source of referrals for mortgage professionals. They are likely to have reliable opinions, and they share a homebuyer’s interest in closing a deal without problems.

“I’m going to avoid brokers. Banks are more trustworthy.”

You are right to disagree. Neither bankers nor brokers are guaranteed to do what’s best for a borrower. Loan officers at banks sometimes earn commissions for selling the programs that are most profitable for the bank and most costly for the borrower. Always ask loan officers and brokers to explain exactly how they are being paid for your deal.
Neither bankers nor brokers are guaranteed to do what’s best for a borrower. Loan officers at banks sometimes earn commissions for selling the programs that are most profitable for the bank and most costly for the borrower. Always ask loan officers and brokers to explain exactly how they are being paid for your deal.

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