topic Re: When should I rate-shop? in Mortgage Loans

When should I rate-shop?

Anonymous — Mon, 14 Jan 2013 16:32:54 GMT

I haven't look at any houses yet, but I plan on checking out some houses next week. I'm curious to know when I should actually rate-shop though. I'll be calling my bank for a pre-qualification today, and I'll likely ask for a pre-approval as well (as long as the credit check fees aren't outrageous). Should I call a few bankers this week to get various pre-approvals? Or should I stick with the one pre-approval from my bank, and not seek out any other lenders yet. Then once I'm ready to make an offer (whether it's next week, or 3 months from now) then I can call a handful of lenders to see who has the best rate?

Also, will there be a big disparity between lenders for the more qualified applicants? My scores are right around 800 (wife's are around 750). We have 20% down, and the mortgage will be about 10-15% of gross income.

Re: When should I rate-shop?

Anonymous — Mon, 14 Jan 2013 16:42:20 GMT

Based on your credit and income, I think you will get the best rate from anyone! Congrats!!!!

Re: When should I rate-shop?

StartingOver10 — Tue, 15 Jan 2013 00:27:29 GMT

Yes, there is a big enough disparity but you will want to get all the closing costs and the rate so you can compare the various loans.

Lenders vary widely in the rates and fees.

Your plan to just get one now and wait until you find the right house to line up your mortgage is a good one. That way you are comparing dollar for dollar based on a specific property and a specific loan type. Take a look at the stickies at the top of this forum to get an idea of what your GFE should look like.

Re: When should I rate-shop?

Lasardo — Tue, 15 Jan 2013 05:37:24 GMT

You can get pull your credit as many times as you want within, I believe, 30 days it only counts as one.
The info is on this website.

Re: When should I rate-shop?

Lasardo — Tue, 15 Jan 2013 05:37:52 GMT

-For a mortgage loan or auto

Re: When should I rate-shop?

Walt_K — Tue, 15 Jan 2013 07:18:13 GMT

Also, any reputable lender should be able to tell you what their rates and fees will be without actually pulling your credit. I had a couple different people pull mine for preapprovals, but we were looking long enough that we got beyond the timeframe when pulls would be scored as one inquiry. When I wanted the lenders to give me updated rates before I locked, I gave them a copy of my reports and asked for the rates they could offer and a schedule of fees. Of course, they will have to eventually pull if you want them to process the application, but they should be able to tell you what they can offer assuming the information you have provided them is accurate.

Re: When should I rate-shop?

Anonymous — Tue, 15 Jan 2013 18:06:06 GMT

Thanks for the info. I got my pre-approval through the bank I use, although it only included the dollar amount of what's approved. I asked when I'd find out about interest rates and fees, and he said "Rate will be based on the day we convert the loan from a preapproval to a real loan with the property. Closting fees are estimated around $3,000". Does this mean I won't know the breakdown of fees (which are discretionary fees the bank charges, and which would be charged by any bank) and I won't get the interest rate until I actually apply for the loan? I figured he'd give a GFE of fees and interest rate as if I applied today, keeping in mind that it's subject to change.

When I shop around for the best rate once I find a house, do I have to actually apply for a mortgage with several companies in order to find out their rates/fees, and then I just won't sign on the dotted line with the companies that have the highest rates?

Ultimately, what I'd like to find out from the lenders is this: If I did buy a house for $350K today, what would be the interest rate, APR and fees that I would be charged (keeping in mind that it will fluctuate based on how interest rates move from today until when I close). By seeing what I'd be charged today, I can compare different lenders before I find a house. Maybe this is unrealistic though, and I won't be able to do this until I have a specific house in mind?