Of all the changes that take place in people’s life the first time they get the keys to their very own home, two things stand out in particular: first, a sense of accomplishment and second, security for their family. To be sure, achieving homeownership and putting down roots in a community come with benefits too numerous to list. But they include stability, community and an improved financial future.
“How ironic, then, that during that journey from finding the perfect home to making it your own, so many people end up paying much more money than they should simply by failing to shop around for the best mortgage loan,” said Rick Piette, owner of Las Vegas-based Premier Mortgage Lending.
It’s surprising but true. At the very time buyers are negotiating the cost of perhaps the largest purchase they will ever make, they are often inadvertently leaving several thousand of their own dollars on the negotiating table. Instead of keeping that money in their own bank account, buyers end up paying it to a lender — often unnecessarily.
“The sad thing is that it only happens because they don’t know the right questions to ask or the right people to ask them of,” Piette said.
“I get it. Buying a home is a lot of work,” Piette said. “There are so many things to get done in addition to preparing to move, which is an ordeal all its own. When you’re overwhelmed, it’s only natural to lean on others for help and advice, especially if you believe they’re more familiar with the subject, like where to get the best mortgage loan.
“But if that person happens to be your real estate agent or homebuilder, buyers need to remember this: They are not mortgage lenders. They may have an obligation to you in their role as an agent or builder, but their advice about where to get your mortgage loan is likely going to be based on the best experience for them, not for you.”
A recent Wall Street Journal article reported that the Consumer Financial Protection Bureau collected interesting financial information about mortgage loans from 2014 data. Over the entire market of 45 million mortgages, the estimated cost to consumers who didn’t shop around was a combined $13 billion. In each case, the researchers concluded that consumers didn’t search for better interest rates because, in layman’s terms, it’s a pain in the neck.
“At Premier Mortgage, we know it can be confusing for borrowers,” Piette said. “That’s why we created our KnowBeforeYouOweNevada.com website to help homebuyers understand how to shop around with more than one lender. In these short videos, borrowers quickly learn what to look for when comparing loans, the difference between lenders and how to understand fees and rates. With this information, buyers will know how to choose the right lender and keep from overpaying literally thousands of dollars for their loan.
“The short explanation is this: Get a loan estimate, compare the fees, compare the interest rates and then make your choice. You may find that a lender advertises no fees to get you in the door. But some may make up for that by charging you a higher interest rate.
“That doesn’t happen at Premier Mortgage, because our ‘no fee’ mortgage loan is a true no-fee loan,” Piette said. “We have no hidden fees or charges. In fact, as a mortgage broker, by law we must disclose every charge to borrowers in writing. On the other hand, banks and mortgage banks can include invisible charges they don’t have to tell you about.
“That’s one reason we believe homebuyers should know there is a difference between mortgage lenders and between mortgage loans because it’s a costly difference that could take a lot of money out of their pockets. Fortunately, that won’t happen with a no-fee loan at Premier Mortgage.”
Premier Mortgage Lending, NMLS No. 393282, is at 701 N. Green Valley Parkway, Suite 125 in Henderson. The full-service lender is a member of the Las Vegas and Henderson chambers of commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.