Dear Ebdb: You've received some great answers to your very important question. I always tell my Buyers to shop around and get good faith estimates. You do it for a car, right? Why not for a Mortgage that your will be paying for a long time?

You have a great point. So, I've asked two of the many great lenders I deal with to give me their input. I wanted to get their perspective. I'll post their reply for you.

If you plan on buying an REO, I suggest that you get a pre-approval from either Wells Fargo, Chase, Bank of America, or Prospect Mortgage. Each of these banks will require that you pre-approve with them in order to buy their REO's. The smaller banks and 3rd Party Asset Managers will want to see a pre-approval from a major lender. Once you get an offer accepted then shop for a loan. In todays market most rates are the same. It should only take one day to shop for a loan. The best rates can be obtained from Fremont Bank, and if you work with a mortgage broker, Provident Funding is the lowest I have seen. In order to get the best rates with these Lenders you need to have 20% Downpayment with >740 Credit Score with Assets. Any good agent, should be able to steer you straight, in order to obtain the best loan.

You've taken the first step to shop around by posing the question.

Since you're looking in Alameda, you probably already heard from other Alameda-based realtors and brokers about lenders they can recommend to you.

We don't make recommendations lightly --- because their performance and their reliability will reflect upon us. They shine, we shine. They falter...well, you get the picture.

As we progress in our careers, we identify people who will perform admirably. And they are the ones we would recommend.

PREAPPROVAL
If you are shopping around, don't be alarmed if the lenders check your credit. As long as you get this done within a certain period of time (i can't be sure, but I think it's within a 21-day window), and the inquiry is about getting a loan, they are all counted as ONE inquiry and as such, have minimal effect on your credit score. Please confirm with the lender.

You don't have to give them EVERYTHING the first time. You can give them scenarios, and they will give you their estimates as long as you understand that this would be based on what you tell them.

SHOP AROUND
Because many REO (real estate/bank-owned properties) require preapproval by direct lenders (banks), it helps to be preapproved by banks on solid footing like Bank of America and Wells Fargo.

AND because mortgage brokers are also very resourceful and go most anywhere, it is a good idea to get one on your side.

AND.....let them know you're shopping around. Some lenders may waive fees that the others won't.

Note, too, that certain programs (or "products") may be available to certain lenders but not the others.

HIGHLY RECOMMENDED LENDERS
Here are three you may want to check out -- pick a banker, and an independent broker.

Mathew Tsang
Leaders Club - Home Mortgage Consultant
Wells Fargo Home Mortgage
(415) 860-3285 Tel
mathew.tsang@wellsfargo.com
https://www.wfhm.com/wfhm/matthew-tsang

Melinda Rogers
Senior Account Executive
Bank of America
melinda.a.rogers@bankofamerica.com
(510) 520-3318

Garrick Werdmuller
Your Personal Mortgage Consultant for Life
510.282.5456 Mobile
info@garrick.biz

Hope this helps!

Hi Ebdb. Your question about shopping around for a loan is right on target, and is also a concern of many other home buyers, too.

I am a licensed realtor for the Black Hills of South Dakota, out of Rapid City. The principles for your question are pretty much the same nationwide.

Regarding "privacy:" If you go t reputable, well established lenders, you should not be concerned about privacy disclosure. Your real estate agent is one person who could give you the names of multiple loan officers that have earned a good reputation. The lenders have to abide by codes of ethics and sitff career-penalties for indiscretion. If you select lenders carefully, privacy should not be a concern for you.

Yes, you should definitely shop around. It IS worth it. You may need to live with your loan restrictions and payments for 30-years. And not at all just to shop for the best rates. In fact, many lenders will be obtaining the money to loan to you from the same national mortgage market. So don't expect to find a big "smokin deal" interest rate from one lender that can't be had from any other.

I advise my clients that a major reason to shop around is not so much to "rate-shop," but to find a lender who: (1) Can and will take the time to learn about you, your needs, and your constraints, -and- take your phone calls, (2) Knows the mortgage market inside and out, including all the special lending assistance programs at the local, state and national level that apply specifically to your personal unique needs, and (3) someone you "click" with at a personal level.

Remember, you are the customer, "the boss." The lender works for you. You will be paying fees to your lender. He or she needs you to hire them, at your option. Any lender should be glad to be interviewed (yes, "interviewed" just like in a job interview), in order to get your business.

And while we're on the subject of "interview," I recommnd to you, as I do with all my own prospective clients, "you should select your next real estate agent as carefully as you select your next home." By that I mean find three or so candidate realtors by referral. Then invite them to come to you and interview for the job, for you to hire them.

But what do you ask in a realtor job interview? I have prepared a list of "Realtor Job-Interview Questions" for you to use in selecting your next agent, at http://www.bhhomes.info/about/choose.htm. Here is list of specific questions to ask: http://www.bhhomes.info/about/scale.htm .

By the way...you should write down what the realtor commits to you during the interview. Then tell the realtor you select, that you will hire them but ONLY for as long as they deliver on what they promised during the interview. Ask the agent to agree to terminate his agency agreement any time you decide to end it.

Hope this helps. If not let me know, please.
I hope others will join in to add to what I have offered, or correct what I have said.

-Lee Alley
Prudential Real Estate
Rapid City, SD

I would suggest you shop around by making phone calls and asking for good faith estimates to see what kind of rates people are quoting, and what their fees are. You are taking a chance in that some loan officers might low-ball you on a rate to get your loan. They will need to know your credit because that is how the loan gets priced. If you pull your own credit, the score will be higher than they will get, so that is not a good idea. A good idea is also to ask friends or relatives who have bought homes recently who they may have used. That is how I get most of my business, because the people who close loans with me always walk away happy from the closing table, and that is the most important thing. You can choose 1 person to run your credit, and ask what those scores are. You can then give those scores to anyone else you talk to. I just would not want to have 10 different people running your credit if I were you. You don't have to provide documentation if everything is very straight forward, like if you are salaried. I don't find that people lie about these things, so I go with what they tell me. If I have any questions, I may ask to see pay stubs or the first 2 pages of their tax returns to verify income. I generally don't verify assets before I take the loan either because people know how much money they have to work with.
Good luck, and I hope you find someone that you are happy with.

Thats exactly what shopping around is. you can contact a couple of lenders directly, or you can have them contact you by using a couple of different websites such as lowermybills.com or lendingtree.com. Just be aware that you will get about 3-5 different companies calling you.

its pretty common practice to get a couple different offers. Just remember, that rates change daily so waiting too long between shopping pretyy much makes the first offer outdated.

If you need help with anything, feel free to shoot me an email at dcastagna@emmloans.com

Danny Castagna
Sr Loan Officer
E-Mortgage Management