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I recommend you let the first lender that you feel comfortable with, the first to take their time with you, someone that doesn't make you feel stupid, let that person pull your credit. They can also give you a written estimate. At this point, give them all your information without the property address (see why not the address at the end). That person can give you a written quote and and a written estimate, as well as, your score. Call lender #2 and #3 immediately after (within the same 2-3 hours). Get written quotes and closing costs from each. Don't waste time with anyone that rubs you the wrong way, period. Your money, you are the customer (never forget that). You may decide to go with someone that doesn't have the lowest quote. That's okay, too. I'll give you a tiny hint if you talk to them tomorrow, we had one heck of a rally today with rates. If someone mentions it, they are in tune to watching the market. If you can't get a quote without them using your stated score, move onto the next loan officer. Dont let this go on for more than the business day. If you leave a message, be sure to state you need a quote for a new loan, and you are hoping to make your decision today. (You know what to say if they call tomorrow). Everyone says if you have it pulled by different lenders in a narrow period, it won't hurt the score. After seeing this happen repeatedly, I do not agree with that statement, entirely. But I do know one thing, if it's not pulled, it won't hurt the score. No one should need to pull for a quote and closing costs. Ask your friends for recommendations. Ask your agent. I would stay with local lenders, shy away from online lenders (especially in another state), and you should talk to one credit union.
Why not the address: lenders must go thru a littany of disclosures once they have 6 pieces of information (your name, your social security number, your income, your sales price, and your loan amount), about your transaction. You only need to withhold the property address from the first lender, because on lender #2 and lender #3, you will withhold your social security number. Now, CFPB would like you to give all 6 pieces to each lender, but I really don't think it's best for you. You will have provided three lenders with all the information about you and your transaction. And, let's just say, you email will be a lot easier to handle and I have problems giving my social out to one person, let alone 3..
And if you hit it off great with loan officer #1, there's no shame in applying there, but I do recommend you compare the quote with at least one other lender. Most of us are in the market - offering a rate generally acceptable. But there are times when each and everyone of us is out of the market (higher than most). That can happen for many reasons. Fearful of trusting a downward trend is something likely to be seen tomorrow.
Say to yourself before each call: I am the customer" and "slow down, can you explain that?" And my favorite, "can you put that in writing so I don't forget?"
i have an offer in a house, how do i compare loan options?
do i need to apply w/ each lender?
would each of them run my credit?
can i apply w/ different lenders at the same time in case it does not work w/ one of them?
Vera
I would recommend getting all 3 credit scores from myfico.com. It will cost about $60 but it is worth the cost.
You can contact a few lenders and request a quote. Give them the following information: your income, credit score(middle),state, county and downpayment amount.
Also interview them about their process, processing time and find out if any other complexities exist. Try to do this the same day so your comparison is not influenced by a rate change in the money market.
Once you decided on the lender, go ahead and apply with them will all the documents. At this point, since you already know the credit score, the lender should be able to honor the quote.
How to compare quotes:
Notice that I used the word quote and not rate. This is because most people overlook the lender fees and shop by rate only. That is not the right way to compare.
Compare the combination of interest rate and the total lender fees(initiation, processing, underwriting fee) and decide on the best quote.
Also when you compare quotes, compare the quotes with 0 points.
i have an offer in a house, how do i compare loan options?
do i need to apply w/ each lender?
would each of them run my credit?
can i apply w/ different lenders at the same time in case it does not work w/ one of them?
Vera
You can get preapproved with several lenders but you can only apply with one at a time.
You compare by calling them and asking or checking their rates online and during the preapproval process they can lock in a rate for 60 days, some may do more than that.
They would all run your credit, but if it's all done in the same time frame it most likely won't count as separate credit runs.
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