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Proper Etiquette When Loan Shopping

New Contributor

Proper Etiquette When Loan Shopping

As I am sure most consumers do when they are shopping for the best terms on a mortgage, they work with more than one broker to offer them the best terms.  What is the best way to handle walking away from the one with the less attractive terms?

 

I am currently working with two loan officers, representing two different companies.  They've both done a lot of work on our file, but one's loan has significantly higher closing costs, and a higher interest rate.  But the loan officer has done a great deal to help us along with the process of getting an application.

 

Should they both come back with pre-approvals, what's the best way to tell the more expensive one that you'll pass, without being a jerk?

 

 

Message 1 of 4
3 REPLIES
New Member

Re: Proper Etiquette When Loan Shopping

Good Question. I had planned on giving them all the opportunity to beat the best offer.

 

Is that considered gauche?

 

Message 2 of 4
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Valued Contributor

Re: Proper Etiquette When Loan Shopping

I don't think so.  

 

Do both brokers know you are shopping?  If not, I would let them know.  It's fair to communicate to both brokers.

 

Get both offers/pre-approvals in writing.

 

If there is one broker you prefer to work with over the other, then give that broker an opportunity to improve the offer.  

Message 3 of 4
Contributor

Re: Proper Etiquette When Loan Shopping


IOBA wrote:

I don't think so.  

 

Do both brokers know you are shopping?  If not, I would let them know.  It's fair to communicate to both brokers.

 

Get both offers/pre-approvals in writing.

 

If there is one broker you prefer to work with over the other, then give that broker an opportunity to improve the offer.  


I agree with this.

 

I mean, they have to think you are smart enough to be shopping around for such a big purchase.  It's not like we are talking about a pair of dress shoes.  At the end of the day, I think there comes a point when you provide some transparency to let them know they are 1 of 2 (or 3, 4 etc...) that you have narrowed it down to.  If they are as candid as you, perhaps they will ask "what do I need to do to win this deal".

 


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