shopping for mortgage

blak6764 · Joined: 04 Feb 2008 Posts: 10 5.53 Dollars($)

Hi Everybody
I am going to apply for a mortgage preapproval.
When is the time to shop around for a mortgage? Now while getting preapproved or at some point later?
Also how much time window will i have?
Happy Holidays Alex

jameshogg · Posted: Tue Dec 09, 2008 1:17 am Post subject:

Hi blak,

Yes, you should start mortgage shopping before getting pre-approved for the loan. Pre-approval basically means going through the mortgage application process. The lender will check your loan prospects based on your credit check, will look at your pay stubs and bank statements, and will then determine how much money to lend you. I don't think there is a time window as such. But once you get the loan, you will go for the closing within 45 days.

Check out the following link to know more about mortgage basics:
http://www.mortgagefit.com/mortgage.html

Thanks

blak6764 · Joined: 04 Feb 2008 Posts: 10 5.53 Dollars($)

Is anything wrong with shopping around both before pre-approval and later
after finding house or after getting purchase contract?
Thanks alex

jameshogg · Posted: Wed Dec 10, 2008 11:43 pm Post subject:

Hi blak,

Mortgage shopping after pre-approval won't help you much. If you do some mortgage shopping before pre-approval, you will come to know about the rates and terms of mortgage prevailing in the market. You will also have the option of selecting the mortgage which you can afford to pay. If you have a pre-approval letter from the lender, it will be easier for you to search for the house you would like to buy.

Thanks

banker0679 · Posted: Thu Dec 11, 2008 12:33 pm Post subject:

Good Afternoon Blak

Shopping prematurely can hurt you more than help you. It's important to shop rates when you're in the position to lock in the rate. If you shopped today, the rates will be lower than last week. Some people start making the decision ahead of time, and this will put you in a bad decision. Most lenders require that you're under contract or have picked out a home before locking in the rate.

A lot of lenders may not even give you a 'real rate' because they know you're shopping around, and not able to lock yet. You should get approved with the lenders you plan to work with. I would ask what the current rates are for your scenario, then compare it with another lender. THEN I would wait till I'm in the position to lock in a rate. No point in teasing yourself about the rates if you can lock it in.

thanks
Robert

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