When you're out on the net shopping for a loan you're sure to run into LendingTree and a host of other Mortgage Lead Generators. They claim 'When Banks Compete, You Win'. What they don't tell you is that they are simply a lead generator for companies who pay them for your information.

When you apply for a loan, anywhere, the rate you're quoted is simply a best guess. No one can tell you exactly what your rate and loan costs will be until your credit is run, income is verified and your purchase contract has been reviewed. Then comes the appraisal and underwriting where things can change drastically.

Within our Real Estate practice our clients who use LendingTree or other lead generators have experienced higher interest rates, higher closing costs and more loan denials regardless of what they are told up front when 'Banks Compete' for your business.

The best advice we can give you regarding your next mortgage is to stay local. Work with a local Mortgage Broker, Bank or Credit Union. You want to be able to sit in front of the person responsible for your loan when things don't go as planned.