Financing in Salt Lake City>Question Details

Scott, Home Buyer in rate quotes seem incredibly good. Proceed with caution?

Asked by Scott, Sat Apr 28, 2012

I noticed that on zillow that I am being quoted in some cases a 50-75 basis point difference on a mortgage rate than what I have been offered at that banks. Compass lending, innovative mortgage alliance, laser lending are some of those offering low rates on mortgages. I have compared both the interest rate and APR and these guys are quoting much lower rates. The reviews on zillow have good things to say. What am I missing here? What problems will I run in to by using such companies? What questions should I ask when shopping them? Just seems like an incredible rate compared to banks and other brokers.

Thanks in advance.

Help the community by answering this question:


I call this the "Corvette In The Showroom" sales technique. Folks pass a Chevy dealer, see the Corvette and walk in to the showroom. They see the beautiful shiny Corvette in the middle of the showroom floor. The salesperson makes a connection. The folks drive out with a brand new---Impala.

The same is true of advertised interest rates. Once the salesperson has made a connection with you and qualified you for financing, the rate changes. It either becomes the same as the local rates you've been quoted or higher.

When you are buying your home, get a referral to a Local Mortgage Banker.

Mortgage Bankers in your community will provide you with a much higher quality of service and financing options than any "Big Bank." Local Mortgage Bankers have long been the source of excellent financing options for homebuyers. Further, Loan Originators who work at Mortgage Banks are LICENSED whereas Loan Originators who work for the "Big Banks" are only REGISTERED. There's a BIG difference.

Sit down face to face with your Mortgage Banker to be thoroughly prequalified. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Consumers have been led to believe---thanks to huge advertising budgets with the BIG BANKS---that they should go to their bank for a mortgage loan. This is the WORST place to get assistance with the BIGGEST PURCHASE of your life! These BIG BANKS are basically BIG CORPORATIONS. You're a number, at best. With a Local Mortgage Banker you will be treated like a friend and a client for life. You can't imagine the high quality of personalized service you will receive from a Mortgage Banker until you try.

As to price---rate and fees---competitive if not better than the BIG BANKS.

You can verify the License of any Licensed Mortgage Loan Originator at

Trevor Curran
NMLS #40140
1 vote Thank Flag Link Sun Apr 29, 2012
The catch is those rates are good for that particular purchase price ($300,000) with 20% down and 720+ FICO. If you fit that one scenario, you are good...but as soon as you have a lower purchase price, down payment or FICO, they will quickly change your rate and APR. Give me a call and I would be more than happy to give you a quote without the trickery.

Dave Bath
Axiom Financial
0 votes Thank Flag Link Sat Apr 28, 2012
But I actually put in the criteria that I was seeking. 289,000 mortgage, 760+ FICO, 5% down and the rates I was getting was: Interest rate of 3.5%, 3.8% APR.
Flag Sat Apr 28, 2012
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