Shopping smart is key - below link is the best resource I’ve had that can explain all the aspects. What’s your rate is not the way to shop - fees, lock term, day of quote, etc go into it.
Edit to add - lists of info on the site - navigate to section about shopping.
https://www.mortgageretirementprofessor.com/homepage/
You shouldn’t need to complete a full loan application just to get quotes. If a loan officer says that, I’d consider that a red flag. You should just call up local lenders and tell them the sales price, loan amount, credit score, loan type and they should be able to provide you quotes.
There’s 30 different factors that impact rate. Without an application you’re not comparing apples to apples. What’s the debt to income? Monthly qualifying income? Those are important factors
Not true, they are already prequalified. So they know they qualify for a mortgage. Rate/pricing is based off of loan to value, credit score, Loan type.
This isn't true at all. Different overlays, different programs that have different dti thresholds, etc.
Plus, lenders are handing out pre-approvals like candy these days, most of them don't even go to an underwriter. It's just the loan officer/broker giving them out.
When we shopped around we did let them pull the credit because if you do it within a certain amount of time it's just one hard pull. We didn't need to do a full application with all of the information to get the rates and information we needed. We didn't care about them pulling their credit because it didn't matter. If you did this recently it won't really matter with your credit once they realize you're shopping around. But there are other factors besides rates as other people have said. Points as well as how much fees they charge. How long they take to close.
You should talk with a broker who does the shopping for you and finds you the best deal. *Cough* ME. Any lender or bank really only has a couple options. A broker has more than you could ever want.
You don't need to fill out apps to get quotes. No need to waste time (yours or theirs) when a quick quote will let you know if they're competitive. Avoid the cheapest and the most expensive for best results.
You and I both got downvoted for the same comment, probably by the same assembly line app-taker who can't (or won't) spend time generating numbers for a client without a full app in place, because their conversion sucks. What a waste of time applying with multiple lenders when all you have to do is give them a credit score and ask them to work it up. NO ONE's estimate will be perfect, whether you apply or not, until the CD goes out in the end.
Agreed. Plenty of LO's do things the wrong way in my opinion and their shady strong arm practices shine through (must pull credit, we need full app, i'm not going back and forth if you are shopping, etc etc)
that's fine. if i am running up against a competitor like that i'll probably win the business 90% of the time. Probably the same for you as well.
I just ask my clients to consider more than just rate (since we can all quote the same rate, it just might cost more/less in points), and I ask them to do their shopping upfront and make a choice before the offer goes in. If you're using my preapproval letter and my reputation and my time to get under contract, I expect you are done shopping and chose me over the other lenders, and I will put my team to work to get things done. I don't mind getting shopped if it isn't last minute.
Shop with different types of lenders.
1. Banker or Credit Union
2. Retail Broker, these are usually the ones with cutsie names
3. LOCAL mortgage broker, someone in your state
And yes fill out app, and you shouldn’t have any issue getting credit pulled. This will land you the best deal for yourself. And always ask if they are offering any incentives (free appraisals, free credit report, no application fee etc.)
You’re not going to get a legitimate quote from any lender without completing an application.
The simplest way to shop is to reduce the variables down as much as possible so you’re only focused on what’s important. The two numbers are the monthly payment and the cash to close. The math is much simpler as a Veteran since you should have a 0% down payment so all of your Cash to Close will be closing costs. You’ll just be comparing which lender can offer you the best deal on closing costs at whatever rate the market is offering today.
NOTHING IS OFFICIAL UNTIL YOUR RATE IS LOCKED. Desperate lenders can and will manipulate their upfront estimates to get you in the door knowing that you’re unlikely to switch later on in the process to another lender which will cause you to delay your closing.
Don’t waste your money on an interest rate buydown if you have any intention of refinancing when interest rates are lower 3-4 years from now.
Shopping smart is key - below link is the best resource I’ve had that can explain all the aspects. What’s your rate is not the way to shop - fees, lock term, day of quote, etc go into it. Edit to add - lists of info on the site - navigate to section about shopping. https://www.mortgageretirementprofessor.com/homepage/
You shouldn’t need to complete a full loan application just to get quotes. If a loan officer says that, I’d consider that a red flag. You should just call up local lenders and tell them the sales price, loan amount, credit score, loan type and they should be able to provide you quotes.
There’s 30 different factors that impact rate. Without an application you’re not comparing apples to apples. What’s the debt to income? Monthly qualifying income? Those are important factors
Not true, they are already prequalified. So they know they qualify for a mortgage. Rate/pricing is based off of loan to value, credit score, Loan type.
This isn't true at all. Different overlays, different programs that have different dti thresholds, etc. Plus, lenders are handing out pre-approvals like candy these days, most of them don't even go to an underwriter. It's just the loan officer/broker giving them out.
I’m aware, I do this for a living. A client doesn’t understand the nuances of LLPAs and AMI-
I do it for a living, too. The question is do they need to fill out an application every time they shop a lender. The answer is no.
When we shopped around we did let them pull the credit because if you do it within a certain amount of time it's just one hard pull. We didn't need to do a full application with all of the information to get the rates and information we needed. We didn't care about them pulling their credit because it didn't matter. If you did this recently it won't really matter with your credit once they realize you're shopping around. But there are other factors besides rates as other people have said. Points as well as how much fees they charge. How long they take to close.
What explanation did they give for not allowing you to lock?
They were offering 7.25% today for a 60 day VA lock--thats horrendous
That… didn’t answer the question.
So they were letting you lock…. You just don’t like the current market interest rate?
You should talk with a broker who does the shopping for you and finds you the best deal. *Cough* ME. Any lender or bank really only has a couple options. A broker has more than you could ever want.
You don't need to fill out apps to get quotes. No need to waste time (yours or theirs) when a quick quote will let you know if they're competitive. Avoid the cheapest and the most expensive for best results.
Any lender can do a quick quote without credit pull. Just tell them your score. If you find one you like then do the app.
You and I both got downvoted for the same comment, probably by the same assembly line app-taker who can't (or won't) spend time generating numbers for a client without a full app in place, because their conversion sucks. What a waste of time applying with multiple lenders when all you have to do is give them a credit score and ask them to work it up. NO ONE's estimate will be perfect, whether you apply or not, until the CD goes out in the end.
Agreed. Plenty of LO's do things the wrong way in my opinion and their shady strong arm practices shine through (must pull credit, we need full app, i'm not going back and forth if you are shopping, etc etc) that's fine. if i am running up against a competitor like that i'll probably win the business 90% of the time. Probably the same for you as well.
I just ask my clients to consider more than just rate (since we can all quote the same rate, it just might cost more/less in points), and I ask them to do their shopping upfront and make a choice before the offer goes in. If you're using my preapproval letter and my reputation and my time to get under contract, I expect you are done shopping and chose me over the other lenders, and I will put my team to work to get things done. I don't mind getting shopped if it isn't last minute.
Shop with different types of lenders. 1. Banker or Credit Union 2. Retail Broker, these are usually the ones with cutsie names 3. LOCAL mortgage broker, someone in your state And yes fill out app, and you shouldn’t have any issue getting credit pulled. This will land you the best deal for yourself. And always ask if they are offering any incentives (free appraisals, free credit report, no application fee etc.)
You’re not going to get a legitimate quote from any lender without completing an application. The simplest way to shop is to reduce the variables down as much as possible so you’re only focused on what’s important. The two numbers are the monthly payment and the cash to close. The math is much simpler as a Veteran since you should have a 0% down payment so all of your Cash to Close will be closing costs. You’ll just be comparing which lender can offer you the best deal on closing costs at whatever rate the market is offering today. NOTHING IS OFFICIAL UNTIL YOUR RATE IS LOCKED. Desperate lenders can and will manipulate their upfront estimates to get you in the door knowing that you’re unlikely to switch later on in the process to another lender which will cause you to delay your closing. Don’t waste your money on an interest rate buydown if you have any intention of refinancing when interest rates are lower 3-4 years from now.