(Closed) Are all FHA mortgages created equal?

posted 6 years ago in Home
Post # 3
Member
7312 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

You should work with at least 2 lenders throughout the process, so there is really no reason to decide right now. Once you are 100% ready to buy, get pre-approved by both lenders. Each time you have a house you may want to offer on, have both lenders work up the numbers for you. If you decide to offer on a house, get a pre-approval letter from one of the lenders. It doesn’t matter which lender’s pre-approval letter you chose to submit with your offer because you are not locked in to that lender just because you used their letter. Once you have a ratified contract in hand, it will be time to play a little hardball with the lenders. Compete them against each other to get your best possible deal. The magic question to ask is, “Is that the best deal you can offer to me?” The whole point of working with 2 lenders is twofold– first, you aren’t stuck dealing with a lender who tries to pull a bait and switch on you, promising you awesome terms and then delivering crappy ones. And second, competition can drive your interest rate and closing costs lower, which can save you thousands.

Post # 5
Member
7312 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

@pfinarffle:  Go ahead and set-up accounts with both. Put a few hundred bucks in each account as a show of good faith that you want to work with these lenders. And like I said before, make sure you apply for pre-approval from both lenders, and apply for the pre-approvals at the same time. Both lenders will pull your credit report. If you do them at the same-ish time, the credit agencies will bundle the two pulls together and only count them as one pull. This does less “damage” to your credit score. But if you go for pre-approval at one lender, and then 2 months later you go for pre-approval at the other lender, the credit agencies will not bundle the pulls. So it will show up as 2 pulls on your report, which will negatively impact your score.

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