- This topic has 6 replies, 7 voices, and was last updated 8 years, 12 months ago by Anonymous.
- May 5, 2011 at 11:54 pm #206509AnonymousInactive
…home? Why and why not? One of the mortgage brokers I spoke with said that it doesn’t hurt your credit score to get pre-approved by more than one broker/lender. But, if being pre-approved by a particular broker/lender doesn’t actually lock you to that broker/lender, then is there a real benefit to getting pre-approved by multiple brokers/lenders? Does it incent them to give you better rates?
I’m looking to buy my first home, and would appreciate your guidance and experience. Thanks!
- May 6, 2011 at 6:50 am #260030myaschulditivernMember
It doesn’t really make sense to get pre-approved through multiple lenders, as there is no real benefit. The vast majority of lenders will expect you to shop around, so they put a good deal on the table the first time. It is nice to be able to put in an offer that the buyer is pre-approved, as it strengthens the offer.
Rate is not the only thing to consider, service of the mortgage broker, transaction fees, closing costs, pre-payment penalties, points, appraisal fees, late fees, anything that is going to cost you money. Get the best loan package from the best lender you can find.
Please stay away from internet lenders, they have no vested interest in making sure you are satisfied and close on time. Some internet lenders are great, do what they say they are going to do, when they say they are going to do it. Others pull a bait and switch, offering you great terms up front, but when the final documents come in, the terms change to a much less attractive package. Also, some lenders are missing closing dates, causing upset to the entire transaction, and some people are losing their earnest money due to the lender not being prepared at closing.
Being an informed shopper will help you avoid mortgage regret.
- May 6, 2011 at 5:19 pm #262317AnonymousInactive
Getting pre approved simply gives both you and the seller a good feeling of what kind of a loan you can be approved for. You know the price ranges you can look for to get the payments you want, and the seller can feel good that you being pre approved shouldn’t have problems getting financing.
Getting pre approved by more than one lender soes nothing to improve this. The one broker is probably hoping you’ll get pre-approved with them, because they know that a preapproval means you are much more likely to get financing through him, which means he makes a commission.
But you have done what you needed, you are preapproved. You don’t need more than that, going through additional brokers to get more preapprovals would just be eating up more of your time. Instead, you should now be concentrating on what house to buy.
My advice would be to get preapproved at one only, but you can still get information on loan programs through different brokers. That way, when you do agree with the seller on a particular transaction, you can go with the loan program that makes the most sense to you. You will have 2-3 days after the seller accepts your offer before you have to start formal loan processing, so you will have that time then to do your final homework and decision on what broker and loan program to use.
- May 11, 2011 at 2:39 am #272028Franchesca NeumanMember
Wow, great question. If you are a standard conventional conforming borrower with good credit, stable income, and cash reserves then you have plenty to bargain with. I will share my 20+ years in the mortgage banking industry. First, if you don’t need any “special” financial help then do yourself a big financial favor and use a well known national mortgage company, not a broker, because no one works for free. You will always pay more when a mortgage broker, who works on commission, submits your loan to a lender for approval. The spirit of healthy competition dictates that the conforming conventional 30 year fixed rates are similar in order to stay competitive( usually within .125% in rate) and are all based in one way or another on the bond market. No one lender will offer significantly higher or lower rates or they would go out of business. Mortgage brokers can only offer you “par” rate (no origination or discount points) by using higher rates to get paid “par plus pricing” by the lender whom will underwrite your mortgage loan. Rates can always be “bought down” by paying points (origination and/or discount). Your tax advisor can better go over whether paying a higher rate with no points or paying lower rate with points which one is best for you) I have included a websites from both FannieMae and Wells Fargo so you have as much information as possible to make the most informative decision. Good luck and congrat’s to getting your first home!
- May 11, 2011 at 2:42 am #272055AnonymousInactive
I don’t know but can u tell me some tips on becoming a Broker/Realestate?
- May 16, 2011 at 4:47 am #276610AnonymousInactive
It’s good to look around but know that the more people look into your credit score the more it drops so try like two or three places at the most.
- June 10, 2011 at 3:44 am #434066AnonymousInactive
looks like you’re using an on board graphics card.
i don’t think your graphics card can handle COD : BO
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