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03-17-2011, 02:30 PM
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Advice on Home Buying / Applying for Mortgage Process
I'm a new home buyer and I'd like some information on how this all works.
I've got my downpayment saved up, I found a house that I think I'm going to make an offer on, and my local credit union has given me a pre-approval letter for the loan I will need. The credit union has not however given me an interest rate, they said they can't tell me that until I'm under contract. I also signed up on lendingtree.com last night and a half dozen banks and mortgage companies have called me trying to get my business. Correct me if I'm wrong, but since I already have a pre-approval letter should I not bother comparing banks until I'm under contract since some of them won't give me an interest rate number until then? Should I just tell them I will call them back after I'm under contract? I have no obligation to get my loan from the bank that gave me the pre-approval right? 
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03-17-2011, 04:40 PM
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You have no obligation to use the bank that gave you the pre-approval letter. As soon as you have an offer that's been accepted, start shopping around among several lenders for the best deal you can find. Or, you could always use a mortgage broker if you feel like you need the help. Just make sure you understand how your broker gets paid before you decide to use him/her. Good luck- I'm going through the same process right now, so I understand how stressful it can be at times.
__________________
President of Creditnet.com, rock climber, ultrarunner, and eater of large quantities of sushi.
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03-22-2011, 12:41 PM
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Also, something to think about with mortgage brokers and lendingtree dot com. Realize, this can result in numerous hard pulls against your credit score actually making it go down. I used a mortgage broker and didn't realize she would try to get me approved by like 21 different loan companies, resulting in 21 hard pulls on my credit report. Not so pretty! Make sure you ask a lot of informed questions. Good Luck!
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03-23-2011, 10:10 AM
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You never have to go with the bank you have pre=approval from. We didn't, and although the first bank that approved us would have been a much easier loan approval process, we saved a LOT of money by going with the next bank that approved us.
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06-17-2011, 09:52 AM
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Quote:
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06-17-2011, 11:57 AM
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Quote:
__________________
Marcus Tullius Cicero: The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.
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07-04-2011, 12:30 PM
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Hey there -
I am also buying a house, and i wanted to add the question (which will help the original poster)... which mortgage companies are the best? hands down i know ING provides great rates that beat everyone, simple to understand mechanics, and low closing costs. You have to put 20% down, but it's great. my issue is I'm buying a new house and I can't use them, as I'm going to rent out my condo. I don't want ING knowing this (less they raise my rate to an investment property rate) ... so I need to find another company who offers similar amazing deals to good borrowers..... shopping now. Oh - and to the original poster: everyone says 30/fixed is the best way to go. But if this is your first home, I would shop 10/1 ARMs too.. chances are, you will probably move in the next 10 years (most first time home buyers don't stay in their first house super long).... and 10/1 ARMs are FIXED for 10 years. I was always super afraid of them... my only advice w/ ARMs is be honest w/ yourself how long you are going to stay there and add a couple years to that to be safe. Points are only good to buy if you stay for a while. I brought 2 points on my first loan and ended up refinancing in 3 years. (so much for that investment...)
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07-04-2011, 06:28 PM
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I recently bought a home and wrote about 8 Tips I learned through the process. If you go to my website and click the real estate category link on the left side, it is called "Home Buying Tips". The whole process is long and horrible, but try to make the best of it.
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07-14-2011, 12:09 PM
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You can still shop around for mortgage rates regardless of whether you're under contract. as long as you have a loan scenario and they've pulled credit, you can get accurate rates. Definitely shop around with as many banks as possible...
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07-14-2011, 05:02 PM
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You don't have to be under contract to get a reasonable quote or estimate of what your interest rate will be. Just understand that it's only an estimate of what the interest rate will be. Rates change daily and are not final until you lock the rate, which can't happen until you have opened escrow and the bank has initiated the underwriting process. That being said, it is difficult to shop around and compare apples to apples bc everyone is competing for your business so will tend to lowball the numbers. I would recommend getting a referral from friends or family to a trustworthy/honest loan officer.
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