See an interest rate that looks too good to be true? It probably is.

This week one of my buyer clients texted me because she was SO excited that she found a low interest rate from an online lender. But it was indeed too good to be true when reading the fine print.

Based on current rates, based on her downpayment, credit score, and the rest of her lending scenario -- she was quoted a 5.5% interest rate from a local lender. Then she went online, clicked on an ad, and was quoted 4.375%. WOW was she excited.

I asked her to send me the estimate provided by that lender, and sure as anything -- it was indeed (excuse my French) COMPLETE BS.

The online lender who shall remain nameless -- in order to get this bait and switch interest rate -- was charging $14,573 in up-front fees to get that rate. That is approximately 4.396% of the loan amount of $330,000. Absolutely insane.

That 5.5% interest rate she had been quoted by the local lender was with zero in up-front fees.

The lesson here? Read the fine print. Compare apples to apples. And if you do not understand what you are looking at -- ask the loan officer to explain it to you. Ask your agent to help you. Ask a friend or family member who has purchased a home in the past to help you.

Once I pointed this out to my client she was absolutely horrified! She decided to stick with her local lender, who is awesome and invited her into the office to make sure she had a clear understanding of rates and terms.