Quote:
Originally Posted by fred2729
SmartMoney -
I have already read up on shopping for a mortgage rate.
I have everything in line.
Credit score, any outstanding balances paid down to maximize my credit, determined my loan type, contacted several lenders (which above you reference not to yank chains until your ready, added the known fees (however these are estimates , so could have a surprise at the end), negotiate and get formal offer (my new construction is to far out to even lock in ATM), add more money down to lower the rate (more than 20% if needed)
I will not be able to lock a rate until late Feb. I’m shopping now so I know
Which 3 lenders to contact for a formal quote when I can lock. My question is “I want to make sure I’m truly getting the best rate with lowest fees & good loan service. I’m having trouble determining this because I cannot get a hard quote on fees. So what recommendation do you suggest?
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Sorry, my day job has me working 24/7.
It is human nature to want the absolute best rate. I hate to break it to you, it probably won't happen. Rates drop after you apply with one place, or another lender decides to have a sale to generate a burst of loans. If you know what you are doing, you know to compare apples to apples. Don't leave yourself open and just ask for "what is your rate on a 400K loan with 20% down?" You should be asking, "what rate are you quoting for 30 day lock on a 400K loan with 20% down, on a (_____) kind of property, with a 700 credit score and no points. What about the same with 1 point?" Be very specific. That will give you two quotes from each lender so you are comparing apples to apples.
Loan Estimates are typically only issued when there is a live loan app (including credit pull), but almost everyone will provide you with a fee sheet. Many will rate match for someone they have been working with for a while. But most experienced loan officers will not chase rate shoppers. Their heads are turned by the next low rate (even if it's not the best deal).
If lowest rate is your desire, turn to the internet lenders that provide little to no service. That's their sales model, get them in with rate, we will close it as close to the closing date, but they miss a majority of the contract dates. Only problem, agents may refuse to work with you and sellers will be advised to avoid your offer due to lender.
Good luck!
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