Getting Reliable Quotes

Lenders know when you're just calling up to get a rate quote. They know you are calling up their competitors. When you ask for a rate quote for a specific lock-in period paying a specific amount of points, most lenders will give you a reliable quote. But you're applying pressure for a great quote. You let the loan officer know you're "shopping around." You want the "best deal."

What do you think happens?

At least one loan officer will lie to you. If he doesn't fudge the rate, he doesn't have a shot at your loan because someone else will lie to you. Plus, you can't check anywhere to see if he is telling the truth. You're not likely to immediately fill out an application and lock in the false rate you were quoted. You're going to keep calling around and shopping and maybe tomorrow you'll call back whoever gave you the best quote.

Truthful, ethical loan officers will not get your loan.

By the time you are ready to really lock in your interest rate, you'll be quoted accurately -- or maybe not. If someone would lie to you to get the loan, they aren't ethical. They may jack up your rate at the end of the deal when your options are limited. You probably won't even realize he's doing it because you aren't shopping interest rates anymore.