(Closed) mortgage help and advice?

posted 6 years ago in Money
Post # 3
Member
14481 posts
Honey Beekeeper
  • Wedding: June 2011

They do pull your credit score when you get preapproved, but they shouldnt need to pull your credit score when you are mortgage shopping.  I did get preapproval prior to looking at homes just to have it on hand, but I was looking so far below my budget that the mortgage broker basically said he’d draft up a preapproval for each home we wanted to bid on as necessary for the price we wanted.  I think my realtor wanted to make sure we werent wasting time working outside our budget. You can get preapproved anywhere, you are not commited to use them for a mortgage.

When you start to shop around for a mortgage, they should be able to give you a rate based on information you give them – when they pull your score for the preapproval, they will tell you what it is, so you can give banks/brokers your score so they can give you an accurate rate.  Then if you want to work with them and proceed, you can fill out the loan app with all the information.  Once you lock your rate, they proceed with the credit verfication again. I would definitely shop around and talk to several mortgage brokers.  If you have any friends or relatives that recently bought, I’d definitely talk to them and see who they used.  I did end up using the mortgage broker realtor recommended.  (But my realtor was also my friend, and at least 4 or 5 of our friends went through this mortgage broker also.)  I verified with 2 other banks, if that was in fact the best rate.

Post # 4
Member
2893 posts
Sugar bee

All pulls done when shopping for mortgage rates only counts as one inquiry if you do all of them within a 2 week period. So, it gives you a window to shop a little without having to obliterate your credit score. Preapproval does matter. It shows the seller you’re serious about purchasing because you have a letter from a bank that essentially says you’re a qualified buyer who has the credit score required to secure a loan if they make an offer to you. Also, if you’re in a competitive market it would be crazy not to have one. The homes in our area would disappear within 24-48 hrs so waiting to get a preapproval before making an offer would have been crazy. You also need to know what the bank is willing to lend you – which is something you find out from the preapproval. No point in shopping if you have no idea what the bank will lend you.

We got a preapproval from lender 1, put in an offer, lost the house to another buyer. Decided we didn’t like the terms of lender 1, shopped for a second lender. Ended up getting our mortgage from lender 2. You aren’t obligated to get something through whoever your preapproval is through but if you switch lenders they’ll draft their own preapproval for you because their terms may be different and they’re naturally just a different company. 

Agents typically don’t recommend super shady lenders. But there’s nothing wrong with researching the lender to find out if there are bad reviews. Is there a reason you don’t trust them? If you’re really worried you can stick with larger names (ex. BOA).

Hope this helps. I just went through it last year and it’s amazing how complicated it is and how little helpful information there is.

Post # 5
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

@claireos:  Agreed, shop for your mortgage within the same time frame and it doesn’t effect your score.  In order to accurately compare multiple lenders, you need them to pull your credit so you can see what terms they will offer you, not their best terms.  You can have your preapproval letter be from one letter that you put in to a home offer, and then actually get the mortgage from someone else if you wanted.

Post # 8
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

@sugarcube:  I don’t think shopping for rates right now is the best idea, you don’t know where they will be headed in 6 months.  Also, you can’t lock in a rate until about a month before you close.

Post # 10
Member
14481 posts
Honey Beekeeper
  • Wedding: June 2011

After you sign the P&S is when the mortgage shopping should start imo.  Up until that point, anyone can still back out since you’re probably still doing the inspection and settling all that.

Post # 11
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

I don’t think there is a specific time.  It took us only about a day to get quotes.  If you apply when you have an accepted, you shouldn’t have too much of a problem.  Rates won’t change much within a few week period, maybe just a quarter of a percent or something but nothing major.

 

Post # 12
Member
887 posts
Busy bee
  • Wedding: March 2010

Definitely get pre-approved! Interview banks/get the range of interest rates before you apply if you’re worried about your credit score. Around my neck of the woods, if you get into a multiple offer situation they won’t even consider you if you don’t have pre-approval. We’ve purchased four homes and sold four houses in the last two years. I don’t have any personal mortgage experience because we paid cash for them, but we definitely did not take anyone seriously who was interested in buying without the preapproval– it’s just too risky as a seller.

Post # 13
Member
1544 posts
Bumble bee
  • Wedding: June 2013

Yes the pre approval and the loan come from the same place…. if you get it from one place but then decide to go with a different company they’ll just have to preapprove you again themselves… which ofcourse means more digs into your credit.

We used a mortgage broker i think they are called which shops around for the best rate for us and then basically sells our loan to a bank. only problem with that was that we ended up with chase. I don’t like chase.

Post # 14
Member
1544 posts
Bumble bee
  • Wedding: June 2013

@sugarcube:  you make an offer with pre approval. You CAN change your lender after that but its a sticky situation and can push off closing. Get pre approved from the lender you plan on getting the loan with and make the offer with that information.

 

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