Five years of shopping rates before locking vs. pulling the trigger day one - which camp are you in?

I used to always shop rates for weeks before locking in a deal. Thought I was being smart. Then last month my loan officer said 'You know you cost yourself 25 basis points waiting on that one, right?' Had me run the numbers. On a $2M loan that's real money. But sometimes rates do drop if you wait. Where do you draw the line between patience and paralysis?

2 comments

2 Comments

nina_butler3d ago

WAIT you lost 25 basis points from waiting? That's INSANE. I had no idea lenders would penalize you like that for shopping around. I always thought the longer wait meant you'd get the better deal, but hearing you lost real money on a $2M loan makes me rethink everything. How long did you actually wait before you locked in?

garcia.quinn3d ago

25 basis points on $2M is like what, $5k? That sucks but I mean you're still getting a loan for two million dollars so it's not like you're on the street. People act like half a percent is the end of the world but if you waited two weeks and rates dipped after you locked you'd be kicking yourself just as hard.