Financing in Charlotte>Question Details

kryswithak, Home Buyer in Charlotte, NC

Should I get pre-qualified/ approved at more than 1 bank? I was pre-qualifed at one bank but want to try the credit union as well?

Asked by kryswithak, Charlotte, NC Fri Oct 8, 2010

I want to basically shop around for the best morgage loan and it seems as if I should try to get pre-approved at more than 1 bank to determine all of the fees.

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13
Hi Kristie,
I somewhat agree with Gerard, however it also depends on your credit scores, keep in mind every time a lender checks your credit it can affect the scores. If you have good scores, then there isn't anything to worry about, however, if your scores are on the lower side, then you might want to consult with them before you let them check your credit.
1 vote Thank Flag Link Fri Oct 8, 2010
Hi Krystie. Lots of great advice here and I agree with most of it. Shopping around is the right way to get the best rate and the lowest fees. Make certain you get a GFE from any lender that stays in the running. Also, ask the lenders if they think getting a 2nd and 3rd opinion will effect your credit score. I have been told both... i.e., shopping for the same mortgage with different lenders will NOT effect your credit score and I have heard that it might. My personal belief right now is that it won't as the FICO scoring companies have learned to allow people to shop their mortgages without being penalized. Nonetheless, I believe it's important to be thorough and continue to ask.
0 votes Thank Flag Link Sun Oct 10, 2010
Krystie,
You are right about shopping around some. Ask the lender for a good faith estimate or all of their fees in writing. The loans that are offered are actually different too. You should look at a bank, a mortgage company, and a credit union

Robin Faison
robin.faison@gmail.com
0 votes Thank Flag Link Fri Oct 8, 2010
Yes, you should shop around. If a lender "has the best deal", they don't have a thing to worry about in your wanting to be sure. If they are the best, you've got no reason not to come back.
0 votes Thank Flag Link Fri Oct 8, 2010
Definately not a bad idea to shop around. A credit union as well as a single bank like Wells or BB&T may give you more limited choices as well as less timely service. Also people who work at credit unions or federally charted banks are not required to be licensed so you may not be talking to an expert when you go to places like this. Good advice to try a mortgage bank who has an array of products and rates from several different banks. Common misconception is that having multiple lenders pull your credit will hurt your score-not true. From the date of the first pull until thirty days later all iquiries will be bundled together as one. The same goes for auto loans, this gives you the option to shop around.

Joshua Hedspeth
Mortgage Banker
Atlantic Bay Mortgage Group llc
704.488.7777
Joshuahedspeth@Atlanticbay.com
0 votes Thank Flag Link Fri Oct 8, 2010
Thank you everyone for the advice. I have decent credit at 710 so I don't need that to come down anymore. So it sounds like I should get a good faith estimate from everyone doing the pre-qualification. I guess I need to only do a pre-approval from the bank I choose to get the morgage with.
0 votes Thank Flag Link Fri Oct 8, 2010
As others have said, yes shop around... One thing I will add though is don't have every bank pull your credit (as this can actually hurt your credit). Instead, find out your score and just tell the various banks your score yourself.

Your buyer's agent would be the best resource you have in pointing you in the right direction for good loan options.

Thanks,
Matthew Tringali
Owner of Group 15 Real Estate
0 votes Thank Flag Link Fri Oct 8, 2010
without a doubt yes. You should look into three to four different banks and see who is offering what. No one bank is going to give you the same as another bank. Sometimes it is fees or charges they charge you. They shoud be able to let you know up front what your out of pocket will be and what rate and fees they are going to charge.
Web Reference: http://www.davedicecco.com
0 votes Thank Flag Link Fri Oct 8, 2010
Yes it is best to talk with 2-4 different banks/credit unions. The best rates and closing costs change and it could be one bank this month an another next month. Check out BB&T bank too, they have a loan in Mecklenburg county called the CHIP loan that is even better than an FHA loan as far as down payment etc.. I have a client who is getting ready to close using this loan and she is saving on the funding fee required for a FHA loan.
If you have any questions or want me to refer you to some lenders let me know.

All the best-
Chris

Christina Heyman GRI
Realtor/Broker NC SC
704-907-8245 cell
heymannc@gmai.com

Allison & Associates Realty, LLC.
0 votes Thank Flag Link Fri Oct 8, 2010
If you would like to check out the credit union, yes do so--nothing wrong with shopping around.
0 votes Thank Flag Link Fri Oct 8, 2010
Krystle,
It's always good to shop the market with loans. The types of products a bank will offer may differ from what your credit union may offer. This is because credit unions aren't governed under the same regulations and their products may be more advantageous or not. To make it easy on yourself, just take the good faith estimate the first lender gave you and bring it to the next one so that they can do a quick estimate for you.

Take care.
Mike Moulton, Broker in Charge
Bee Home Solutions, Inc.
0 votes Thank Flag Link Fri Oct 8, 2010
You should check around for rates. Your realtor might be able to lead you quicker to the lowest rates being offered. As realtors, we typically, especially on Fridays, receive the rate sheets from lenders who want our business.

That being said, you only need the pre-approval letter to submit with an offer. If you later on find a lender who has better rates, you certainly could put your loan with that lender as long as you qualify for the loan being offered.

Today, I received a rate sheet from Trustmor Mortgage. I don't know if they are in NC, but the 30yr fixed rate was 3.75% with .75 point. That is fantastic!

If you find a home that is a Fannie Mae or Freddie Mac foreclosure, you could receive other benefits, like some closing paid for by the seller.

Best of luck,
0 votes Thank Flag Link Fri Oct 8, 2010
Krystle -

There is no reason not to give your Credit Union a try.

Competition is good. If they both know you have applied with a competitior - you are more likely to get the best - most aggressively priced loan.

Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
703-216-9100
0 votes Thank Flag Link Fri Oct 8, 2010
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