Do Bankrate and NerdWallet Give Accurate Mortgage Rates?
When you’re in the market for a mortgage, you likely look around for the best mortgage rates. Two of the most popular sites, Bankrate and NerdWallet, promise to give the most up-to-date rates for any situation, but are they accurate?
The short answer is ‘no.’
What Bankrate and NerdWallet provide are best-case scenarios. They provide quotes for ‘perfect’ or ‘ideal’ borrowers, but millions of borrowers turn to them for their information each month.
Unfortunately, only borrowers with great credit and at least a 20% down payment will get accurate quotes. Therefore, the advertised rates are hardly available for the typical borrower, which can be misleading.
Lenders Have Different Rates
Most borrowers find that when they call the bank Bankrate or NerdWallet advertise, they don’t get the same quotes they found online.
It’s either a case of them not qualifying for the lender’s program or the lender adjusting the advertised rates based on the borrower’s qualifications.
Bankrate and NerdWallet get paid to advertise rates for banks, but that doesn’t mean that’s the rate any borrower will get.
Mortgage Rates are Unique, Just Like You
No two borrowers have the same qualifications, and no two lenders will offer the same rates and terms.
Your mortgage rate should be based on your qualifications and needs, not on generically advertised rates.
For example, the rates advertised are typically for 15 or 30-year conventional loans, but there are many other loan programs available, including:
· Mortgages for the self-employed
· Mortgages for Foreign Nationals
· Debt Service Coverage Ratio loans
· No Income loans
Big-name banks don’t have these loans. Instead, they have one or two programs that, if a borrower doesn’t fit into, they can’t qualify them, which makes the rates most borrowers find online useless.
The Better Way to get a Mortgage
So what’s the right way to get a mortgage?
Work with a knowledgeable loan officer who works for a lender with many programs. If you have any unique qualifying factors, don’t assume you will qualify with a big bank because chances are that you won’t.
Instead, work with a loan officer that has a diverse selection of loan programs to offer you. This could mean plans for the self-employed, a borrower living off investment income, borrowers looking for investment properties, or borrowers who can’t verify their income.
When you get an accurate quote for the loan that suits your needs, you’ll be better able to close your loan rather than hearing, ‘sorry we couldn’t get your loan approved.’
Final Thoughts
Don’t waste your time depending on generic mortgage rate quotes online that only apply to perfect borrowers.
Instead, let us help you get the perfect loan for your needs. We look at your qualifying factors and what makes up your financial situation. We don’t expect anyone to have ‘perfect qualifying factors.’ We know no two borrowers are the same, but together we can find you the loan that suits your needs and helps you buy the real estate you want.