Reply
New Contributor
Posts: 53
Registered: ‎02-01-2013
0

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?

 

 

New Member
Posts: 10
Registered: ‎03-15-2013
0

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?

 

Valued Contributor
Posts: 2,702
Registered: ‎08-13-2009
0

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.  

Contributor
Posts: 78
Registered: ‎12-22-2009
0

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".

 


Starting Score: (2009) EQ = 626 | TU = 664
Current Score: (03-18-2014) EQ = 737 | TU = 703 | EX = 723
Goal Score: 740


Take the myFICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.