Hey, I'm considering buying a house in the next year and want to get pre-approved for a loan amount before I get to into the weeds on particular houses. Have a few stupid questions about applying for mortgages. People say shop and around and get the best rates and APR. I've also been told you just apply for the mortgage before really talking to mortgage team at the bank. Do people apply to multiple banks and see what offer they get or really just pick one first and only apply there? Thanks in advance.
Honestly, most major mortgage companies will give you pretty competitive rates. Personally, I've used Quicken/Rocket for my last few refi's and everything is usually quick and easy. One of the things to keep in mind when shopping for a mortgage, rates will change (even small amounts) from day to day...most times, the person you will be working with is going to help you lock in the best rate. It wouldn't hurt to reach out and start the process even if it is just to see how much you could get approved for. Now is a great time to buy (from a borrower's perspective)...but the flip side is that because rates are so low, the home prices are usually jacked waaaaay up.
Having a pre-approval letter really does help when you're shopping for a home. If you are nervous about the process, as for recommendations for Mortgage brokers from your real estate agent. Vet them and ask them their fees up front. They should usually be pretty reasonable. They do the heavy lifting for you and will shop your loan with multiple underwriters. They will also often guarantee a pre-approval directly via their company before even shopping a loan.
My best rate on a refinance was through Costco. I'm sure their mortgage rates are good, too. I originally went with my local credit union, who usually offer better rates than big banks. If you're getting a new build, the builder lender sometimes gives closing cost incentives.
I believe you usually need a pre-approval letter when submitting an offer. You shouldn't do this at multiple banks but once your offer is accepted, do shop around to get more bids. I ended up working with a broker because A.) they worked much faster and offered better service than Chase and B.) they found a lower rate.
Gazette Mortgage 832-5350-833 - kerry@gazettemortgage.com Call Kerry, she will keep it straight with you.
If you're asking me, from what I have heard and personal experience, dont do this. Yes, they can offer big incentives that entice home buyers but customer service, proper paperwork, and other details that should matter to the buyer are lacking. Go with someone that is going to help YOU and not just go through the motion in putting in "numbers".
Of course, you need to compare the numbers. But doesn't hurt to hear them out. I didn't go with the builder's lender because I found a better rate that was less costly in total.
what city are you looking to buy in? i ask b/c most markets are so competitive right now. prices are inflated and selection is very limited. getting a pre-approval letter is your very first step in the homebuying process. you can go to your bank right now and get one for free. should take 30 minutes or so. that will at least give you an idea of how much you can borrow.
In the middle of a refi on a 30 year fixed at 2.625 (was 3.5) with half a point. Locked it in a few weeks ago. Insane how low rates are right now. My last mortgage on my old house was 2.625 (refinanced in 2013) on a fixed 15 and I thought it was the deal of the century. I used a traditional bank on the last mortgage and the initial mortgage on my current house but actually used a lender off of bankrate.com this time around as they were much more competitive than the standard brick and mortar banks in town this time. I would start there just to get an idea and you can call lenders asking about rates as long as you know your credit score to get an idea. Good to shop around but be careful as you don't want to formally apply to too many as they pull your credit score and too many pulls lowers it.
Don't bother shopping around at this point. As others pointed out, rates will change. Depending on how leveraged the lender is will determined their willingness to compete. Before wading into this venture, you should know where you stand with lenders. Lenders are getting much more picky since the start of Rona. Are you a vet? (they get mad stupid breaks) Are you applying for a conventional loan? Do you have 10% to put down? Do you have a credit score greater than 785? (Lenders are requiring higher credit scores for the best rates these days) Have an idea on the price range of the property youre looking for. Check out better.com. They will do a soft pull.(wont count against your credit) They have competitive rates and you can get a matrix of quotes, updated daily before you have to lock in. The site will also give you a formal loan estimate, which is what you should use to compare loans. Also you can keep this process indefinitely (they will close it after a couple months but you just reopen it). They are pretty aggressive so use a disposable phone number. You'll also have to use a legit address of a property. All of this w/out talking to a representative. This is a good way to go if you're not looking to buy immediately. Most lenders and realtors will not put forth any real effort unless you're ready to buy now.
I went from 4.75 in 2018 to 2.5 in 2020 on a 30 year conventional fixed. It would have been crazy to not refi.
