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Old 10-27-2009, 09:00 PM
 
Location: somewhere over the rainbow Ohio
2,017 posts, read 5,329,426 times
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Quote:
Originally Posted by LLuce View Post
why keep them from pulling your credit?
I would guess is every time the credit is pulled, it counts against the final score.
Pam
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Old 10-27-2009, 09:04 PM
 
10 posts, read 25,670 times
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Do you know if I will be asked to pay for transaction fees when shop around for a good faith estimate from a mortgage broker? Will mortgage broker provide a good faith estimate to me?
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Old 10-27-2009, 09:36 PM
 
Location: Maryville, TN
290 posts, read 758,996 times
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Good point. I never thought about that. How does someone get their own credit score? I've had my credit report, can get that once a year free. But it never included the actual credit score.

Quote:
Originally Posted by Pam& Bill View Post
I would guess is every time the credit is pulled, it counts against the final score.
Pam
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Old 10-27-2009, 09:39 PM
 
Location: Beautiful East TN!!
7,280 posts, read 21,240,213 times
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Quote:
Originally Posted by LLuce View Post
why keep them from pulling your credit?

Because every time your credit is pulled, it will lower your score. I know "they" say that if you are shopping for a mortgage that you can have your credit pulled as many times as you need to within a 14 day period and it is only one hit. There is a little known fact about that that "they" forget to tell you. Every mortgage broker or banker needs to use the same credit pulling company (no they do not pull direct from Equifax, Transunion and Experian, it has to be from a third party.) for that to actually happen. There are 40 or so pulling companies. In reality when shopping for a mortgage your score could go so low during that process that you could shop yourself right out of eligibility for a mortgage.

Quote:
Originally Posted by H2Ofront View Post
Do you know if I will be asked to pay for transaction fees when shop around for a good faith estimate from a mortgage broker? Will mortgage broker provide a good faith estimate to me?
No, you should not be charged anything to get a quote, which essentially what a Good Faith Estimate is. Yes, banks and or mortgage brokers will provide you with a Good Faith Estimate. Word of caution, do not go with who ever has the lowest rate, go for the lowest fees associated and who you just feel better working with. The GFE will have all associated fees on it.
Make sure you are comparing apples to apples, same mortgage (30 year fixed) amount of down payment and rate, then look at all the other fees.
Hope that helps.
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Old 10-27-2009, 11:27 PM
 
Location: The Conterminous United States
22,584 posts, read 54,054,160 times
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Quote:
Originally Posted by LLuce View Post
Good point. I never thought about that. How does someone get their own credit score? I've had my credit report, can get that once a year free. But it never included the actual credit score.
You do have to pay for that. I checked mine not that long ago. I forget what I paid, but it wasn't that much.

If you pull your free credit report you can print it and bring it with you to the bank or mortgage company.
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Old 10-28-2009, 01:22 PM
 
46 posts, read 130,900 times
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Not a common thing of hearing this in TN that majority of the real estate folks are not good. They will leave you hanging and show up to collect the comission check.

As for the title company and mortgage broker, it is buyer's choice however most of the time your "honest" agent can make a recommendation but at the same time he/she has to let you know if they are getting any "kick-backs" from the deal

Goodluck with your first home and let us know how it goes. There are a few GREAT real estate folks here in Knoxville but you have to avoid the bad ones.
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Old 10-28-2009, 02:26 PM
 
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I got 2 quotes (30 years fixed) from a national bank that I got my pre-approval letter and a local TN bank recommended by my agent. The national bank is 0.26% higher than the local bank. These two banks should have pulled my credit score in order to give me the quote. I haven't checked the fees but will look into it later. Should I shop around for a better rate and fees? Will my credit score be ruined if I shop around?

Max4Speed, can you please DM me who the good real estate folks and the bad ones are? Thanks.
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Old 10-28-2009, 03:50 PM
 
Location: Beautiful East TN!!
7,280 posts, read 21,240,213 times
Reputation: 2786
Quote:
Originally Posted by H2Ofront View Post
I got 2 quotes (30 years fixed) from a national bank that I got my pre-approval letter and a local TN bank recommended by my agent. The national bank is 0.26% higher than the local bank. These two banks should have pulled my credit score in order to give me the quote. I haven't checked the fees but will look into it later. Should I shop around for a better rate and fees? Will my credit score be ruined if I shop around?

Max4Speed, can you please DM me who the good real estate folks and the bad ones are? Thanks.
Check the fees, check the fees, check the fees! That is where the truth is about the better choice. Also, was the local bank also a 30 year fixed? 30 year fixed, over 80% loan to value you will have higher rates but could be the best mortgage. Do not shop by rate alone. Yes, the more people who pull your credit, the lower your score will drop. Tell them you score and debt service ratio and they should be able to give you a quote based on that, but remember, if you tell them you have a 780 credit score and a 33% DTI and when you choose them because they quoted you the best rate, then when they do pull your credit and get your income information and it is really a 615 and a 55% DTI, do not be surprise when they say they can either not give you a mortgage at all or it will be at a much higher rate and you have to put more cash down. You have to give them real info to work with.
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Old 10-28-2009, 05:45 PM
 
10 posts, read 25,670 times
Reputation: 11
Both quotes based on 30 years fixed. I can't compare the fees between the national bank and the local TN bank yet as I received a written good faith estimate only from the national bank. I got a verbal quote from the local TN bank but haven't received a written one from them yet.

According to the written good faith estimate provided by the national bank, the monthly mortgage payment consists of "principle and interest", "real estate taxes" and "property insurance (homeowner, flood, etc.)".

I have a few questions regarding to the property insurance ($100 per month). Is $100 reasonable? Am I supposed to pay $100 a month to the bank for the first 12 or 24 months only? After 12 or 24 months, the buyer can pick which insurance company and what need to be insured, right? Please educate me.
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Old 10-28-2009, 06:37 PM
 
Location: Beautiful East TN!!
7,280 posts, read 21,240,213 times
Reputation: 2786
That is just an estimate on the insurance. You choose an agent or stick with the one you have for your cars or life insurance. They don't know what your premium will be so they estimate, usually high. It is good that they put that on there up front because it will be in the final, make sure the local includes your "escrows" (that is what anything included in your payment on top of principle and interest is called.)
Get a written Good faith from the local bank.


note: DM me for anything further, I am happy to help but this line of conversation is going off topic, sort of, from the original thread topic.
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