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Confused about Pre-Approval Process

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SilverBerries
Contributor

Confused about Pre-Approval Process

My head is spinning, so I'm hoping someone can help. I thought when you were trying to get a pre-approval that you wanted to shop around for the best deal. I have narrowed it down to two mortgage companies and my credit union. On another post, Shane I think it was, said you should only have one pre-approval. If you only go with one, how do you know you're getting the best deal possible for you? I have read and studied so much, I thought I had this all straight in my head - now I'm totally confused.

 

I'm working with a realtor and looking at possible properties. Spent a couple of hours on the way home today looking at potentials. (Found myself at one point driving down a hard-packed road, crossing over a swollen river, and wondering if I was going to be the headlines for tomorrow's news!) MapQuest doesn't always do a good job explaining the terrain you're going to be going through. I've spoken to two companies (hate to say, I'm not sure if they are mortgage brokers or mortgage bankers but I'll find that out tonight!) and went by the credit union today, but have to get back with them on Monday before submitting my application. Do I continue talking to all three, or do I pick just one? How do you decide who to get the pre-approval from? Then what? Is this the company that you'll be stuck with, or is there another opportunity later on to shop around?

 

I'm not even sure if I'm asking the correct questions now. HELP!

 

Thanks!

 

Your help will be much appreciated!

 

SilverBerries

Message 1 of 5
1 ACCEPTED SOLUTION

Accepted Solutions
SilverBerries
Contributor

Re: Confused about Pre-Approval Process

Thanks, Shane. I think I understand what I need to do now.

 

SilverBerries

Message 5 of 5
4 REPLIES 4
ShanetheMortgageMan
Super Contributor

Re: Confused about Pre-Approval Process

You don't need to get pre-approved in order to find out what potential terms could be offered to you once you would be approved.  Are either the credit union or two mortgage lenders/brokers you spoke with just blowing the others away in what terms they can offer you?  Or are they pretty much all the same?  Most mortgage companies are going to be pretty close to each other on rate/fees, sure you'll get the random company trying to fund their retirement on your 1 loan, but that isn't the norm.  If they are all the same or pretty close to the same, then the one you want to go with is the one that makes you feel most comfortable with the loan process you'd be going through.  Does it matter if you are getting a 4.75% rate vs. a 5% rate if the company that offers the 4.75% rate is non-communicative, makes you feel like you are bothering them, and doesn't give you full answers?  That's an example that even if someone has the best financial deal, they might not be the best fit.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 5
SilverBerries
Contributor

Re: Confused about Pre-Approval Process

I've only spoken with the three, plus provided some prelim info. in e-mails or over the phone. I haven't submitted an application to anyone yet. I was getting ready to, then hesitated because of the "you only need one pre-approval letter" comment. So, do I go ahead and fill out the application with all three? I guess that's what I need to know. As far as feeling comfortable, I have one that I "feel" the most comfortable talking to, but have confidence in all three. It is possible that the credit union could end up having some better interest rates, but the LO I feel comfortable with seems to know the ins and outs of getting financing for educators. Bottom line here - what is my next step? Fill out the application? All three or pick one? Once I decide on the home, do I contact all three for the best GFE or just one?

 

....and on the same subject, different topic, will an automatic application go through if I have fraud alerts on my credit reports? Equifax has been removed, but it's still on TU and Exp. It was put on 3-4 years ago and was only supposed to be good for three months, but they never took it off. (Hackers got into the UNI's financial system.)

 

Thanks, again, for the help. Just goes to show you that all the reading in the world never prepares you as well as hands-on experience.

 

Shane, thanks for the response. I appreciate your assistance - and anyone else who has helped!

 

SilverBerries

Message 3 of 5
ShanetheMortgageMan
Super Contributor

Re: Confused about Pre-Approval Process

Fill out the application with the one you are most comfortable with.  You can get GFE's from any of them without actually filling out an application.  Fraud alert doesn't affect FHA loans.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 5
SilverBerries
Contributor

Re: Confused about Pre-Approval Process

Thanks, Shane. I think I understand what I need to do now.

 

SilverBerries

Message 5 of 5
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