What is the best way to get pre-approved? (loan, fixed rate, real estate)

[CityGirl72]

Lending tree?

Go through your real estate agent?

GO through your own bank?

What tricks are out there to get the best pre-approval to start your home search?

TIA

[TimtheGuy]

Originally Posted by CityGirl72

Lending tree? Definitely not

Go through your real estate agent? Your agent could refer you to someone if you fully trust them

GO through your own bank? Yes, if they have mortgage specialists

What tricks are out there to get the best pre-approval to start your home search? No tricks. You want everything to be upfront, fully disclosed and solid.

TIA

..........

[Brandon Hoffman]

Options 2 and 3. Ask your agent for referral for 2-3 lenders and try your own bank too. If you have a large bank such as BoAmerica then go through one of their mortgage reps as opposed to just walking into your local branch. Call and see who puts you on the best program and go with them. Call all 3 lenders same day to make sure you get current rate quotes from all. Ask for them to send you a good faith estimate with your closing cost on it.

Be honest and use full disclosure when you go over information. They aren't going to judge you but if you give false #s it could come back to bite you later because you have to provide documentation on your finances. It could change your loan terms or even delay or kill a closing later if you aren't honest up front.

I'm not a fan of Lending Tree or Quicken but it's purely anecdotal. When I was getting my last home I called them both just because I heard their commercials all the time. They were both terrible and their estimates were considerably worse than traditional lenders. Quicken was a predatory lender if there ever was one I've spoken too(I never told them I was a Realtor with a finance certification). The crook with Quicken tried to charge me a 1% origination fee and 3 additional points on the back and acted like it was normal. He got very defensive when I called him on it and told me every lender was going to charge me those points and "at least he was honest but because everyone else was lying to me".

[rcarrillo]

I do not like the Lending Tree, Bankrate and Quickens because of the same reasons stated. Also there are great things to buy on the internet.... if I want to save some money on a TV, microwave or a book its a great tool. These are priced based commodities and as long as the seller is legit, you get the same product for less money.

Professional services like financial planning, mortgages, lawyers, etc are a bad idea. Would you buy from a commercial that says "when doctors compete, you win" and think that price is the best factor in choosing a professional? Sure price is very important, but lowest price is not always the best (ask anyone with a 2 year I/O ARM from 2006). It's the value, service and financial security that you get that matters in the long run.

The online dealers are based on the assumption that 1 mortgage fits all and that it can be done via computer with little to no interaction. It also means there is no accountability and there will be no one there if you have a problem (check the threads on people panicing before closings because of lack of service in face-to-face transactions and imagine what someone across the US on the phone will do if you have an issue). There are some people that are knowledgeable and fit the mold and can go online and get a great deal by cutting out service.

For most others its good to have an honest professional that sits with you, listens to your situation and goals and then makes an actual plan to fit those needs. Those that were warned to take solid, secure fixed rate mortgages they could afford instead of adjustable stated income loans on speculative properties are feeling a lot better right now even if they paid an extra $300-500 a few years ago.

Ask your Realtor if you trust them, but why not start with friends, family members or co-workers? At least a few of them must own homes and had a good experience. Use that to your advantage and ask them for 2-3 referrals. Call the person and ask about their experience, their business plans and other questions to qualify them as much as they will qualify you. If you do not get the feeling that they will be open and honest or are experienced enough move on.