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I have used lending tree before and it seems like there is usually one reasonable offers and 3 awful offer so I don’t really see that as true competition.
What I want is to go to place A and lay it all out and then go to place B and lay it all out and then sign whichever one has the best deal (without any changes from the beginning offer) without paying any fees (so they can collect information) prior to signing that loan.
Is this possible?

5 Thoughts on Is it possible to get multiple mortgage companies to compete for my refinance?
  1. Reply
    November 22, 2012 at 8:19 pm

    Yes, I often have people shop around. Go to one broker get a Good Faith Estimate and then go to another and get theirs, which ever one is better I say take that one to the opposite company and soon they will begin to improve their offer. You can go back and forth with both. It will drive them crazy, but you’ll get the best deal because a normal broker is willing to make less as long as they can get the deal at all.

  2. Reply
    November 22, 2012 at 8:57 pm

    Yes you can definitely shop around. Just have everything in a little folder, employment and income info and go from A to B. If you have an idea what your credit score is, they wouldn’t even need to pull your credit to give you a ballpark figure. If they do pull your credit, be sure both lenders (banks) give you their best offer based on your score. Once a lender pulls your credit, they have to make a preliminary lending decision and by federal law, must provide you with a set of RESPA disclosures within 3 days. Look at the Good Faith Estimate (GFE) for both and compare them apples to apples. Some lenders say no points, but then charge you 2% in junk fees.

    Don’t lay out anything at the point of application, if they ask you for $ $ , leave. Tell them if their offer is the best, they will get that fee once your decision is made. I recommend going to your local bank (or a few local banks) and your local credit union. Check out what current rates are for different terms (15 year vs. 30 year), so you know what you are looking at going in to it.

    I’ve been in the mortgage business 17 years, if you need more details/help, let me know

    Avoid the mortgage broker, go directly to the bank.

  3. Reply
    November 22, 2012 at 9:02 pm

    Yes you definetely can and that is the right way to do it.Compare the rates and most importantly how much you are saving every month.The rule of thumb is to break even your refinance charges within 2-2.5 yrs by the money you save every month.And if your broker is experienced and ethical they will help you get the CEMA in order to save 2% on taxes.I would be more than happy to help.Thank you

  4. Reply
    November 22, 2012 at 9:14 pm

    I’d say shop around, but also be realistic. Keep in mind that some unethical lenders (usually brokers) may give you an unrealistically low quote to earn your business, then “bait and switch” you into something worse – far worse.

    Always know who you are dealing with and most of all get an education so you know what is within normal limits.

  5. Reply
    November 22, 2012 at 9:56 pm

    Of course it’s beset to shop around. Never just go to one broker/lender, 3 is a reasonable number. When a potential borrower comes to me, I don’t give them my best offer, I most of the time give them the highest offer and then go from there. Because, sometimes even my highest offer beats the competition’s best offer.

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