Shopping for a mortgage in today's environment

[Anonymous]

What is the best way to shop for the best mortgage rate? I'm told now that it takes longer to process loans that it is bad for your credit if you shop multiple vendors. Also, there is a new requirement that requires the mortgage companies to pull a 45 day credit report - how does this impact the process?

[Anonymous]

The best thing to do is to first decide what type of mortgage you want. Almost all of the banks use the same rate, that really isn't changing much between banks. Right now 5.5% is pretty standard as the top level for most loans. It is not taking longer now because there actually is a slow down in applications. My broker said that a couple of weeks ago, there was a mad refinace rush but things have slowed down again. If your credit is good then there shouldn't be a problem. I never heard of a 45 day credit report. My broker just pulled an Experian Mortgage Solution Report, which I was pleasantly surprised was a soft pull!

The most important thing is getting a good broker. I have made internet applications for quotes and have never gotten a phone call, or was called back hours and hours later, those people I don't talk to. The people that want to do business with you are the ones that call back right away. Also, go to mortgage chatboards and mortgage BROKER chatboards and just start reading good stories and horror stories.

[WannaHouse]

The best thing to do is to talk to family and friends for good LO's or brokers. Then, if you visit more than one lender, make sure you do it all in a 2 week period. All the credit pulls will be looked at on your FICO scores as one pull. (because you are shopping for a major purchase). Find the lender that suits your needs and go for it!!

[DallasLoanGuy]

wanna house is right.

you need to get a couple of GFEs and pay attention to the feesin the 800s section.

http://ficoforums.myfico.com/fico/board/message?board.id=loans&thread.id=13507&jump=true

Shane wrote this great post about GFEs

 If I were to shop lenders... I would call them and ask.... "what is the rate and fees for xyz loan"

now, depending on what loan... they may not be able to tell you.

they will want to know loan amount, fico, down payment to determine rate on conv.

loan amount and score for fha

 what loan amount are you looking for?

credit scores?

down payment amount?

we may be able to tell you what loan will be best for you

[Edited to make URL an active link - Lel]

Message Edited by Lel on 07-18-2009 10:45 PM