Shopping around for lenders? (incentive, documents, appraisal, agent)

[Podo944]

Hi, we're prequalified with a Lender through an agent we know, but should we be shopping around? Do people usually go with the first Lender who approves a loan?
I heard though if your credit is schecked too often, it can ding your credit report? Should I just bring the most recent credit report in to any prospective lender? Also, should I talk to my bank? We're always getting letters about Home Mortgages.
Thanks!

[George Chong]

First - you are only pre-approved and the paper that your approval that is written on is not much. Read the fine print of your pre-approval letter and it will have verbiage to pending appraisal, additional credit checks/verifications.

Prospective lenders will want to pull their own copy. I think you can have your credit pulled within a month's time and it will not negatively effect your credit.

I always suggest to my clients to shop their loan. I suggest a big bank, a credit union and a mortgage broker.

Good luck

[chet everett]

The smart thing to do is get a referall from a trusted friend, coworker,relative or neighbor that has recently had good service from a mortgage firm / broker. The reality is that rates are so low now that SPEED, honesty and efficient communication are what you really need to base the comparisions on. Some one that has recently done a good job for someone you know has every incentive to do the same for you.

Banks no matter how small or large are unlikely to offer anything in service or terms that cannot be bested through more specialized lenders. Some credit unions are run more like banks while others are run a little more like specialized mortgage lenders. They can be a good resource.

In generally you should have a good idea of what is on your credit history but the lender will need to pull your data. Multiple hits in a narrow space of time (two weeks or less) will NOT negatively impact your scores.

Those "marketing letters" you are getting cost your BIG bank BIG money on a national scale and they pay for that by giving you a worse deal on the mortgage they offer you. Not smart but that is the way they pay their overhead costs... If you "talk to 'em" odds are high that the actual work is going to happen in some far off teleservice center and when they screw up something and your closing gets delayed no "marketing letter" can make up for this. Stick with a some one that has the ability to keep all of your vital documents together and do the loan in a timely manner.

[Podo944]

Just asking because we met an agent and he got us in touch with his lender and we seemed to get involved pretty quickly. Don't really have a huge desire to shop around as the loan officer is very prompt in getting back to us. Just wondering since I've been hearing now from others about shopping around. (Also a little wary about the whole thing... "now's a great time to buy" and all that... he he...)
Just want to make sure we've got our eyes open, but she and the agent seem okay. Thanks!