1st Home Purchase

[Anonymous]

Called a mortgage broker today to begin the process of pre-approval/loan. What I know of this process I've gleaned from a 1st time buyers seminar, talking w/friends (who seem to have done no research...just relied on their agents (???)), and information off the web and this site.

My question-what is the impact of filling out the questionnaires on-line regarding loans? Each time I look up "Mortgage rates", I get kicked to sites asking for information (including my SSN), to "pre-qualify" me. Some of the sites seem legit (Experian for example), but I am leery of giving the information they request on-line and leery of the assumed credit pull on my scores (TU-673, Equifax-? Experian-665; previous experience suggested to me that TU was always my highest, Experian always my lowest).

My broker is the sister of a good friend, and several in our group have used her with positive experiences, but I wondered if I should do other loan shopping also; yet I'm afraid of jacking anything up as my scores seem just nominal.

Anyone have experience or advice regarding the Experian site or E-Loan or any of those online companies? OR advice regarding leaving it to the Broker? Seems counter-productive to me to leave it in someone else's hands...but I am a definite novice here. Thankx!

[ShanetheMortgageMan]

The online websites typically sell your information to a few more individuals, kind of like how LendingTree works, so you aren't guaranteed that your information will end up in someone's hand who is competitive, telling the truth, or won't be running your credit without your authorization (yes that happens quite a bit).  I used to purchase leads from LendingTree.com and the reason why I stopped was because other companies were flat out lying to customers, since they know the "online" customer is probably only going to go with the lender who offers the lowest rate/fees, so the only sure fire way they would get a potential customer to keep on talking to you is if you can beat out everyone elses quote, then later during the process change the terms, or tell them they didn't qualify for that program but they have another program they qualified for.  Once the customer spends enough time/money they are unlikely to go elsewhere to start the process over again, and online lenders know this.  If your friends are recommending the broker then that says something right there, they were obviously treated right and had no problems during the process, which when buying a home (first time or 9th time) is equally as important as getting good terms.  eLoan is different because they actually do the mortgage themselves rather than re-sell your information, except with eLoan for not everyone who works there is knowledgable about every mortgage program available.  A good source to compare with the broker would be the bank you bank with.

[Anonymous]

Realtors can be an excellent source of referrals to lenders - and just like any other business there are good Realtors and not-so-good ones.  Lenders talk to us about their programs etc and I will not refer anyone unless the lender is someone that I would do business with personally (my standard).  I won't send to my company affiliated prime lender because I think he's lazy and a jerk (it causes a lot of tension for me when they see another lender on the sheet but my clients are 'served' in the proper manner).

As for finding a mortgage use the two step program:

Pull your scores and reports (FICO, please)

Fax to or meet with at least 4 lenders to discuss your options

From these conversations decide who you would like to work with and apply

When you get the good faith - revisit the other 3 to se if they can beat what you have.

Take that knowledge and go back to lender #1 and have him/her match it (if not then go with the other lender if it is actually the better deal for you)

Remember that mortgages are a package deal and a balancing act - points vs rate, total due at settlement etc.  Someone can give you a fabulous rate with a large number of points - are you willing  to (or can) pay those at settlement?