Rate Shopping Etiquette

[Aj Escomiendo]

What’s the proper etiquette when shopping mortgage rates? If planning for shopping rates, is it respectful to be transparent and tell the lender/broker that you plan on shopping the rate to get a better deal? 

[Robin Simon]

Quote from @Aj Escomiendo:

What’s the proper etiquette when shopping mortgage rates? If planning for shopping rates, is it respectful to be transparent and tell the lender/broker that you plan on shopping the rate to get a better deal? 

 Some good responses already in this thread but I would add it definitely depends on the loan product you are looking for - Conventional for example is going to be pretty much the same everywhere so it makes sense to pick one upfront sooner rather than later - more sophisticated commercial deals, the cost/process is more lengthy and consuming, so its probably a negative for you the borrower if you try to shop during/after the process (just adding time and costs).

For Non-QM/DSCR it can certainly make sense to shop but best to do it all upfront before really starting the process (a term sheet etc.) because there are a lot of factors that can cause it to backfire (rates can change, long-term relationships, extra switching costs, etc.) that probably cost more than you'd gain