There are so copious mortgage lenders, how do I find the best rate short messing up my credit rating?
800+ credit rating,
San Diego, California
10-15% down payment
Need approximately $200,000 loan to purchase my first home or condo
As you can see, I have an excellent credit rating that I am fundamentally proud of. I have been told that up to 4 mortgage lenders can look at my credit previously it starts to negatively affect my rating. My question is: how in the world can I find the vastly best rate available to me when there are hundreds of lenders out there but I can simply ask a handful for pre-approval before my credit rating starts going down. I'm familiar next to sites like Bankrate.com, but I've been told that the listings on those sites are rewarded advertisements and that the rates listed are commonly impossible to get in actual life. Can anyone help next to suggestions for how to narrow down the hundreds to maybe 10 or so that I can filch a closer look at?
Answers:
Some really good answers here, but I have to give 'FinancingLoans' the thumbs up for the tirade on Marty.
Avoid internet lenders, many will provide your information to other lenders and your credit rating can take a huge hit. Source(s): Oregon Realtor
Very simple. Get a copy of your OWN credit ranking which you can take to various lenders for purposes of loan rate comparison. Don't present any lenders authority to check your credit file. You can obtain a free copy of your credit report, and at hand is a small additional fee to search out the credit score.
Once you have located one or two lenders beside whom you feel comfortable, only afterwards allow them to check your credit file.
They have to pull your report so they can run your report thru automated underwriting.
Although, some can usually eyeball the deal and describe if you are good to go... especially next to an 8oo fico
FICO doesn't care if you apply with one guard or 5000 banks.... as long as it is withing 30days.
All 'mortgage inquiries' within 30 days of respectively other are treated as one.
Get a GFE from 3 or 4 lenders and go with it.
They should adjectives be within .125% - .25% of each other Source(s): http://www.dallasloanguy.com
Doesnt matter.
This is what you need to do. Say I know the hill is going to pay your YSP (yield spread premium) you want to charge me a 1% origination fee. Im liable to give you 2 points total. 1 from the bank, 1 from me. What is the rate at Par (meaning the mound doesnt pay YSP). And me paying you 2 points. What is it if the bank pays you 1 point, and I salary you one point. What is it if the bank pays your 2 points on the YSP and I pay you zilch.
I want all 3 rates from your rate sheet from 3 different lenders. I will pick the servicer I want. You will have to sign this daily that says you will only product 2% total on origination and YSP. Anything over incase you get back 1.25 instead of 1.0 as I know rates are exact you will credit toward my origination levy.
Also I want to see a copy of the rate sheets. I know they are not for borrower use since they dont show APR. But im sure you are smart enough to figure out the APR for what you are showing me.
When I lock I want to see the lock confirmation showing exactly what your YSP is and I will game that to the 2% we agreed upon. (that they can show you).
You have to know going in. You will conforming Fannie Mae, Freddie Mac, FHA or VA financing. Your rate might be a tiny tiny bit better because of your win. With some companies they will give a .25% bonus on the YSP for scores over 720. Tell them you want that bonus. They attain 2 points period.
They dont need to see your credit report to communicate you what the rates would be with any company. I work with over 100 lenders, next to that information I could tell you exactly where you would be near all of them without seeing your credit.
And so can any other loan officer. Make them sign the 2% reminder, and make them give you a copy of the lock showing the YSP. It doesnt other show on the HUDS. I do it for my clients.
**************** UPDATE ******************
Bank of America is right, they will have to pull it themselves. But they dont own to pull it to tell you what the rate would be. You say aloud you are full doc loan, you have 10% down, you have a credit mark of 800+. You can call a mortgage broker and they can tell you what Bank of America rates are, as capably as WAMU or USBANK, or Wells Fargo ect.
One thing you have to realize most loans for these bank come from brokers. The banks will not kill the brokers (dont bite the appendage that feeds you). If you go next to my first suggestion asking a broker for a set 2% on origination and YSP. Most brokers would be fine with it.
Point is that broker quoting Bank of America rates will give you a much better rate later if you go into the branch itself. This year alone I have done 3 loans for guard employees, sending them back to their own ridge. Even with their discount and my 2% guarantee, their own branch couldnt touch it.
Point is, nobody in the world desires your credit to quote you their best rate. They ask you for credit because it commits you. Dont be stupid.
I like Matz. I have read some of this answers today. He have good advice too.
PS sorry marty if you come rear legs. I dont give thumbs down, but I will kick you out of the room anytime you make a contribution an answer like that. How many accounts are you on?
As per Mazz... I totally agree beside Mazz no lender will charge you more then 1%. But they will let the guard pay them another 1% or more, thats what you have to be worried something like. Thats the YSP. I think Mazz will agree with me on this, no lender is going to freshly take 1% total (origination fee and YSP combined). Mazz say 1% but thats the 1% you see, not the 2% you dont.
I dont know the state Mazz is in, but I like her answers. The problem is Utah is really strict and I forget how bleak people can be screwed in other states. Some states they articulate underwriting is 1000 dollars. If its only 250, contained by utah, we can only charge 250 or we lose are license. So I forget about what some brokers do. They charge you 60 bucks for a credit report that cost 18. They charge you 450 for an appraisal that cost 285. We cant do that surrounded by Utah. But I know alot of lenders do it, so ask for invoices if you dont live in Utah. I know you can do it in other states.
I forget brokers in reality do this. Its not an issue here so I forget to mention it. Source(s): 15 years mortgage real estate exp.
Previous responders have given you some right information in relation to using a credit report thatyou supply for preliminary comparisons. You can get a free copy of your credit report lacking having to sign up for anything elase at the US Government site annualcreditreport.com.
I've been a mortgage lender for more than 20 years and I can enlighten you this; we all sell to indistinguishable investors. There really isn't that much of a rate differential. Where you will see a difference is in the fees required for your financing. In order to determine which grant is most cost effective you need to compare both fees and rate. You can do this by comparing Truth In lend Disclosures. This disclosure shows you the cost of the financing expressed in an Annual Percentage Raate (APR). The closer the APR is to the interest rate quoted to more cost effective the financing.
Finally, remember rate and charge are only a couple of components of what makes a loan the right one for your one needs and goals. Choose your loan officer near the same care you would show surrounded by choosing a physician or your child's care provider. You are looking for someone who spends more time listening to you than they do selling you themselves. Watch out for the "I can win you the lowest rate" sharks and stay away from the trolls in here.
With your credit score and funds availability you are an A+ rag borrower. Don't pay more than a 1% loan fee and look for the lowest quote from the entity you feel you can trust most. There are good and bleak loan officers at every lender. You might call a local title company and ask their best escrow officer for a couple of recommendation for loan officers to interview. She'll know how has smooth closings and satisfied borrowers.
You're exactly right that the published rates on those advertisements typically aren't available for any existing loans. Usually they're just a marketing ploy.
There's nothing wrong beside taking your own credit report to various lenders to obtain quotes. Keep surrounded by mind that, according to the credit bureaus, similar credit inquiries (i.e. all mortgage related inquiries) will be treated as matching inquiry in a 30 day time frame. There's not a indubitable number of inquiries, but rather a time frame. Basically this means that multiple credit inquiries from different mortgage companies/banks won't hurt your evaluation if they happen at the same time. Just don't dawdle too long between credit pulls.
That being said, if you pick 3 or 4 lenders to give you a quote and a complete Good Faith Estimate of their charges afterwards you should get a pretty good theory of what's available to you for your new loan.
Personally I'd get quotes from brokers or bankers referred to me by my friends or own flesh and blood first. After that I'd check with the local chamber of commerce or BBB. I'd only resort to the internet sites as a ultimate resort if I couldn't find anyone else. Source(s): mortgage broker
The FICO scoring process "thinks" you are desperate for money if you apply for too many loans.
There may be a lot of lenders, but at hand are not that many worth considering.
The big national lenders are # 1 Countrywide Financial and # 2 Indymac Bank. Both of these companies have sub-prime problems. I suggest you avoid these. Their rates will be high when other people won’t buy their mortgages.
Bank of America, Wells Fargo and Wachovia Bank are good ones.
I own experience with 1 on-line lender, which I like. It is Quicken Loans (URLis below). These folks lend their own money. Source(s): http://www.quickenloans.com
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San Diego, California
10-15% down payment
Need approximately $200,000 loan to purchase my first home or condo
As you can see, I have an excellent credit rating that I am fundamentally proud of. I have been told that up to 4 mortgage lenders can look at my credit previously it starts to negatively affect my rating. My question is: how in the world can I find the vastly best rate available to me when there are hundreds of lenders out there but I can simply ask a handful for pre-approval before my credit rating starts going down. I'm familiar next to sites like Bankrate.com, but I've been told that the listings on those sites are rewarded advertisements and that the rates listed are commonly impossible to get in actual life. Can anyone help next to suggestions for how to narrow down the hundreds to maybe 10 or so that I can filch a closer look at?
Answers:
Some really good answers here, but I have to give 'FinancingLoans' the thumbs up for the tirade on Marty.
Avoid internet lenders, many will provide your information to other lenders and your credit rating can take a huge hit. Source(s): Oregon Realtor
Very simple. Get a copy of your OWN credit ranking which you can take to various lenders for purposes of loan rate comparison. Don't present any lenders authority to check your credit file. You can obtain a free copy of your credit report, and at hand is a small additional fee to search out the credit score.
Once you have located one or two lenders beside whom you feel comfortable, only afterwards allow them to check your credit file.
They have to pull your report so they can run your report thru automated underwriting.
Although, some can usually eyeball the deal and describe if you are good to go... especially next to an 8oo fico
FICO doesn't care if you apply with one guard or 5000 banks.... as long as it is withing 30days.
All 'mortgage inquiries' within 30 days of respectively other are treated as one.
Get a GFE from 3 or 4 lenders and go with it.
They should adjectives be within .125% - .25% of each other Source(s): http://www.dallasloanguy.com
Doesnt matter.
This is what you need to do. Say I know the hill is going to pay your YSP (yield spread premium) you want to charge me a 1% origination fee. Im liable to give you 2 points total. 1 from the bank, 1 from me. What is the rate at Par (meaning the mound doesnt pay YSP). And me paying you 2 points. What is it if the bank pays you 1 point, and I salary you one point. What is it if the bank pays your 2 points on the YSP and I pay you zilch.
I want all 3 rates from your rate sheet from 3 different lenders. I will pick the servicer I want. You will have to sign this daily that says you will only product 2% total on origination and YSP. Anything over incase you get back 1.25 instead of 1.0 as I know rates are exact you will credit toward my origination levy.
Also I want to see a copy of the rate sheets. I know they are not for borrower use since they dont show APR. But im sure you are smart enough to figure out the APR for what you are showing me.
When I lock I want to see the lock confirmation showing exactly what your YSP is and I will game that to the 2% we agreed upon. (that they can show you).
You have to know going in. You will conforming Fannie Mae, Freddie Mac, FHA or VA financing. Your rate might be a tiny tiny bit better because of your win. With some companies they will give a .25% bonus on the YSP for scores over 720. Tell them you want that bonus. They attain 2 points period.
They dont need to see your credit report to communicate you what the rates would be with any company. I work with over 100 lenders, next to that information I could tell you exactly where you would be near all of them without seeing your credit.
And so can any other loan officer. Make them sign the 2% reminder, and make them give you a copy of the lock showing the YSP. It doesnt other show on the HUDS. I do it for my clients.
**************** UPDATE ******************
Bank of America is right, they will have to pull it themselves. But they dont own to pull it to tell you what the rate would be. You say aloud you are full doc loan, you have 10% down, you have a credit mark of 800+. You can call a mortgage broker and they can tell you what Bank of America rates are, as capably as WAMU or USBANK, or Wells Fargo ect.
One thing you have to realize most loans for these bank come from brokers. The banks will not kill the brokers (dont bite the appendage that feeds you). If you go next to my first suggestion asking a broker for a set 2% on origination and YSP. Most brokers would be fine with it.
Point is that broker quoting Bank of America rates will give you a much better rate later if you go into the branch itself. This year alone I have done 3 loans for guard employees, sending them back to their own ridge. Even with their discount and my 2% guarantee, their own branch couldnt touch it.
Point is, nobody in the world desires your credit to quote you their best rate. They ask you for credit because it commits you. Dont be stupid.
I like Matz. I have read some of this answers today. He have good advice too.
PS sorry marty if you come rear legs. I dont give thumbs down, but I will kick you out of the room anytime you make a contribution an answer like that. How many accounts are you on?
As per Mazz... I totally agree beside Mazz no lender will charge you more then 1%. But they will let the guard pay them another 1% or more, thats what you have to be worried something like. Thats the YSP. I think Mazz will agree with me on this, no lender is going to freshly take 1% total (origination fee and YSP combined). Mazz say 1% but thats the 1% you see, not the 2% you dont.
I dont know the state Mazz is in, but I like her answers. The problem is Utah is really strict and I forget how bleak people can be screwed in other states. Some states they articulate underwriting is 1000 dollars. If its only 250, contained by utah, we can only charge 250 or we lose are license. So I forget about what some brokers do. They charge you 60 bucks for a credit report that cost 18. They charge you 450 for an appraisal that cost 285. We cant do that surrounded by Utah. But I know alot of lenders do it, so ask for invoices if you dont live in Utah. I know you can do it in other states.
I forget brokers in reality do this. Its not an issue here so I forget to mention it. Source(s): 15 years mortgage real estate exp.
Previous responders have given you some right information in relation to using a credit report thatyou supply for preliminary comparisons. You can get a free copy of your credit report lacking having to sign up for anything elase at the US Government site annualcreditreport.com.
I've been a mortgage lender for more than 20 years and I can enlighten you this; we all sell to indistinguishable investors. There really isn't that much of a rate differential. Where you will see a difference is in the fees required for your financing. In order to determine which grant is most cost effective you need to compare both fees and rate. You can do this by comparing Truth In lend Disclosures. This disclosure shows you the cost of the financing expressed in an Annual Percentage Raate (APR). The closer the APR is to the interest rate quoted to more cost effective the financing.
Finally, remember rate and charge are only a couple of components of what makes a loan the right one for your one needs and goals. Choose your loan officer near the same care you would show surrounded by choosing a physician or your child's care provider. You are looking for someone who spends more time listening to you than they do selling you themselves. Watch out for the "I can win you the lowest rate" sharks and stay away from the trolls in here.
With your credit score and funds availability you are an A+ rag borrower. Don't pay more than a 1% loan fee and look for the lowest quote from the entity you feel you can trust most. There are good and bleak loan officers at every lender. You might call a local title company and ask their best escrow officer for a couple of recommendation for loan officers to interview. She'll know how has smooth closings and satisfied borrowers.
You're exactly right that the published rates on those advertisements typically aren't available for any existing loans. Usually they're just a marketing ploy.
There's nothing wrong beside taking your own credit report to various lenders to obtain quotes. Keep surrounded by mind that, according to the credit bureaus, similar credit inquiries (i.e. all mortgage related inquiries) will be treated as matching inquiry in a 30 day time frame. There's not a indubitable number of inquiries, but rather a time frame. Basically this means that multiple credit inquiries from different mortgage companies/banks won't hurt your evaluation if they happen at the same time. Just don't dawdle too long between credit pulls.
That being said, if you pick 3 or 4 lenders to give you a quote and a complete Good Faith Estimate of their charges afterwards you should get a pretty good theory of what's available to you for your new loan.
Personally I'd get quotes from brokers or bankers referred to me by my friends or own flesh and blood first. After that I'd check with the local chamber of commerce or BBB. I'd only resort to the internet sites as a ultimate resort if I couldn't find anyone else. Source(s): mortgage broker
The FICO scoring process "thinks" you are desperate for money if you apply for too many loans.
There may be a lot of lenders, but at hand are not that many worth considering.
The big national lenders are # 1 Countrywide Financial and # 2 Indymac Bank. Both of these companies have sub-prime problems. I suggest you avoid these. Their rates will be high when other people won’t buy their mortgages.
Bank of America, Wells Fargo and Wachovia Bank are good ones.
I own experience with 1 on-line lender, which I like. It is Quicken Loans (URLis below). These folks lend their own money. Source(s): http://www.quickenloans.com
Related Questions: