Should I shop around for Mortgage Lenders??

[Anonymous]

So we have waited for 2 years since filing Chapt 7 BK to list our home of 10.5 years so we can build in a new subdivision. Back in August we got pre-approved with a

mortgage lender in our area. Since the BK we can only do a USDA or FHA loan and our lender recommended doing the USDA because it requires $0 money down.  SO we were able to get a contract on the new built even before we sell our current home, its on a contingent clause. We have not listed our current home yet per our realtor because they want the closing time frames to be around the same time so we are waiting until the footers are in the ground which should be very soon since they have staked our lot...... YAY! We are really excited to be getting a new built home with a garage and extra sq footage and closet space!

So I was wondering do you think its wise to get several diff approvals from different lenders, like from credit unions etc? We are members of Ascend and Penfed and it just so happens that the company the builder works with is Penfed Realty & Berkshire Hathaway. All suggestions are appreciated. Thanks

[Dalmus]

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@Anonymous wrote:

So we have waited for 2 years since filing Chapt 7 BK to list our home of 10.5 years so we can build in a new subdivision. Back in August we got pre-approved with a

mortgage lender in our area. Since the BK we can only do a USDA or FHA loan and our lender recommended doing the USDA because it requires $0 money down.  SO we were able to get a contract on the new built even before we sell our current home, its on a contingent clause. We have not listed our current home yet per our realtor because they want the closing time frames to be around the same time so we are waiting until the footers are in the ground which should be very soon since they have staked our lot...... YAY! We are really excited to be getting a new built home with a garage and extra sq footage and closet space!

So I was wondering do you think its wise to get several diff approvals from different lenders, like from credit unions etc? We are members of Ascend and Penfed and it just so happens that the company the builder works with is Penfed Realty & Berkshire Hathaway. All suggestions are appreciated. Thanks

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You should absolutely shop around.  Many here will tell you to talk to a mortgage broker who can further shop on your behalf, saving you a lot of legwork.

I would suggest checking at credit unions you are already a member of, but also check some LOCAL credit unions.  Sometimes there are programs available at the local level that national lenders can't compete with.  For example, in my case, LandmarkCU  beat the lowest rate offered by a broker *AND* I had $0 in closing costs  (I only had to pay for an appraisal).  The broker couldn't get below about $2000 in closing costs with his lender network.

[Anonymous]

I am not familiar with any brokers so I guess I can google  my area, I don't want a lot of people running my credit because I need it to be as high as possible, the lender ran it the 1st part of June and I know our scores have increased because we have paid off our credit credit cards with the exception of 2, 1 for each of us ($800 - $900) and then the one that our HVAC unit is financed through Wellsfargo.

We were also told that because of having a chapt 7 Bk we will only qualify for 2-3 types such as USDA, FHA & I think Conventional? I know with the Lender we are working with, there are no out of pocket fees and the builder of the new home is paying closing costs and I think we are required to pay closing costs when we sell our current home? I am not sure. Thanks