Shopping for best mortgage rate while under contract (interest rate, pre-approval, credit)
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So i have a few questions about how this process works. I'm currently working with a broker who is working on fully underwriting my pre approval. My question. Once i'm under contract, how do i go about shopping rates? Do i simply need to fill out mortgage applications with other lenders and then compare GFEs? Does this slow down the time to close if i do this? Is there a better route to do this?
My plan is to go with the broker who has been working with me and fully underwritten me however i do want to make sure i am getting the best rate and lowest closing costs.
So i have a few questions about how this process works. I'm currently working with a broker who is working on fully underwriting my pre approval. My question. Once i'm under contract, how do i go about shopping rates? Do i simply need to fill out mortgage applications with other lenders and then compare GFEs? Does this slow down the time to close if i do this? Is there a better route to do this?
My plan is to go with the broker who has been working with me and fully underwritten me however i do want to make sure i am getting the best rate and lowest closing costs.
Thanks in advance for the info.
Extensive advice has been given on this topic - try the search feature and the threads will come up. A few took a while to write, I know, because I wrote some of them.
So i have a few questions about how this process works. I'm currently working with a broker who is working on fully underwriting my pre approval. My question. Once i'm under contract, how do i go about shopping rates? Do i simply need to fill out mortgage applications with other lenders and then compare GFEs? Does this slow down the time to close if i do this? Is there a better route to do this?
My plan is to go with the broker who has been working with me and fully underwritten me however i do want to make sure i am getting the best rate and lowest closing costs.
Thanks in advance for the info.
So you're just going to let someone do all the heavy lifting, take their time, do a good job for you, and then when it's all in place, yank the rug out from under them?
So you're just going to let someone do all the heavy lifting, take their time, do a good job for you, and then when it's all in place, yank the rug out from under them?
Classy.
Did i say that?
My question was how to go about doing my due diligence while hopefully still using the guy i have been working with. I have never done this before hence the question. Are you insinuating that people don't shop rates? Should i accept the rate/fees im given regardless of whats presented? Is there a better way to shop rates?
My question was how to go about doing my due diligence while hopefully still using the guy i have been working with. I have never done this before hence the question. Are you insinuating that people don't shop rates? Should i accept the rate/fees im given regardless of whats presented? Is there a better way to shop rates?
I understand what your asking. Here is what I am doing. On the same day, I emailed 3 mortgage lenders/brokers asking for a quote. No credit is run for this. The 2 lenders rates were very similar. The broker was a slightly lower rate and $1000 less in closing cost fees. So apples to apples, the mortgage broker was a better choice. Now, in a few weeks when we are ready to actually apply I will reach out to all 3 for an updated quote. Best one overall is who we will apply with. Once we apply, we would not rate shop. I would think it would slow things down to change at that point.
I understand what your asking. Here is what I am doing. On the same day, I emailed 3 mortgage lenders/brokers asking for a quote. No credit is run for this. The 2 lenders rates were very similar. The broker was a slightly lower rate and $1000 less in closing cost fees. So apples to apples, the mortgage broker was a better choice. Now, in a few weeks when we are ready to actually apply I will reach out to all 3 for an updated quote. Best one overall is who we will apply with. Once we apply, we would not rate shop. I would think it would slow things down to change at that point.
That make sense. My challenge is in my area its super competitive. So having a fully underwritten pre-approval is a huge advantage. But that involves one of them going through that process. So i guess my worry is being that i am in the process of the full underwriting can i still shop without offending them? I do worry about shopping under contract because the whole point of being underwritten is to close quicker. Will they be offended if i ask them to match another rate? Will that slow down the closing process?
That make sense. My challenge is in my area its super competitive. So having a fully underwritten pre-approval is a huge advantage. But that involves one of them going through that process. So i guess my worry is being that i am in the process of the full underwriting can i still shop without offending them? I do worry about shopping under contract because the whole point of being underwritten is to close quicker. Will they be offended if i ask them to match another rate? Will that slow down the closing process?
You should shpp before going under contract. Starting over could very well slow down closing and is misleading to the seller who thought it was already taken care of.
That make sense. My challenge is in my area its super competitive. So having a fully underwritten pre-approval is a huge advantage. But that involves one of them going through that process. So i guess my worry is being that i am in the process of the full underwriting can i still shop without offending them? I do worry about shopping under contract because the whole point of being underwritten is to close quicker. Will they be offended if i ask them to match another rate? Will that slow down the closing process?
I guess my thinking is why would you shop after you are in the full process of being underwritten? If you do find a lower rate, to change lenders at that point will definitely slow down the closing process as you are essentially starting over. Rate shop now so that you are comfortable you are getting the best loan. Make it clear that you are comparing rates and they need to put their best foot forward. Make your choice and follow it through.
What you are not considering, I think, is that the value of a good broker or lender is NOT entirely the rate and closing costs. It's also the service that you receive. Getting the house closed on time, with as little aggravation, is the goal. Saving 1/8th on the mortgage interest rate or $200 in closing costs is, frankly, inconsequential.
I will say this: Many years ago, I discovered that the broker I was using had indeed charged more in closing costs than other equally reliable competitors. (I was inexperienced - this was my conventional mortgage - and still needed to be educated.) Rather than pulling the loan, I asked the broker to consider adjusting his closing costs. He had already done all that "heavy lifting" and spent a good amount of time educating me. He reduced his closing costs by about 2/3rds, and I was willing to pay a few extra hundred bucks over the competition. Twenty years later, and I still think that was a fair compromise.
What you are not considering, I think, is that the value of a good broker or lender is NOT entirely the rate and closing costs. It's also the service that you receive. Getting the house closed on time, with as little aggravation, is the goal. Saving 1/8th on the mortgage interest rate or $200 in closing costs is, frankly, inconsequential.
I will say this: Many years ago, I discovered that the broker I was using had indeed charged more in closing costs than other equally reliable competitors. (I was inexperienced - this was my conventional mortgage - and still needed to be educated.) Rather than pulling the loan, I asked the broker to consider adjusting his closing costs. He had already done all that "heavy lifting" and spent a good amount of time educating me. He reduced his closing costs by about 2/3rds, and I was willing to pay a few extra hundred bucks over the competition. Twenty years later, and I still think that was a fair compromise.
Good point. I have had a great experience thus far with this broker and he is quite responsive. Which as you pointed out is valuable while closing.
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