Home Buying in Dallas>Question Details

TONY, Home Buyer in Addison, TX

Been pre approved with one mortgage company can I or should I apply with a bank or another broker?

Asked by TONY, Addison, TX Tue Jan 29, 2013

Is there any advantage of this and will it affect the process?

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Answers

15
You can shop...
Normally I suggest you do this when you have a property in mind.
As your agent I also normally look at your good faith estimate or GFE from the lender and see if it is line with other lenders my clients have used.

We are very very picky about lenders and recommend only the ones we know get it done right and for a fair price.

You can see homes for sale in Addison at this link:
http://www.metroplexhomesalesinfo.com/listings/areas/29699/p…
0 votes Thank Flag Link Sun Feb 3, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
I personally wont get that many preapproval. Every time they will run a credit check on you and that will reduce your score after awhile. So just use the one you have and wait until you have an executed contract then shop around

Dixon
Realtor
http://www.findyourtexashome.com
0 votes Thank Flag Link Thu Jan 31, 2013
It's good to ask for a pre-qualification, since generally that doesn't require much effort on your part or expense on the lender's part. Be careful: some lender say pre-approval when they actually mean pre-qualification. If you haven't surrendered your tax returns, W-2s, and signed lots of papers, you're not pre-approved. It's a common problem that some lenders use the term loosely.

If you're pre-qualified, you can compare the bottom lines among competing lenders. Honestly, do not worry about fees - that's a distraction. You should look at two things:
monthly payment for principal and interest (plus MI if any), and
cash required to close (but without any assumptions of seller credits).

All the other numbers are just noise to confuse you.
The industry was forced to go to GFE 2010, but it is not all that helpful for comparing. Assumptions about taxes and insurance can change the monthly payment estimate, but you're on the hook for actuals, not their estimate.
Some lenders also assume you're getting seller paid expenses or something else. You have to compare apples to apples. And if you're worried about how much money the bank or the broker is making on the deal, you're not looking for the best deal for you.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Tue Jan 29, 2013
Tony,

If not working with a real estate professional, please feel free to visit my site to search for homes that may interest you.

http://mbrownstead.kwrealty.com


Providing Solutions Because...Your Move Matters!

Michael L. Brownstead, GRI, ABR
REALTOR®
Keller Williams Realty
1002 Raintree Cir., Ste. 100
Allen, TX 75013
E-mail: MBrownstead@msn.com
Cell: 214-872-0400
0 votes Thank Flag Link Tue Jan 29, 2013
Yes, you can shop around, but once you order your appraisal most lenders will not transfer it so you would have to pay for a whole new appraisal if you stopped mid-stream and switched lenders. The ones that let you transfer appraisals are few and far between. To compare apples to apples and oranges to oranges, look at the Truth In Lending Statement and see what the actual APR is. The APR in this sense includes any fees and points and what the loan actually costs you (not the interest rate you were quoted). Looking at this document is an easy way to see which deal is the best one for you.
0 votes Thank Flag Link Tue Jan 29, 2013
Yes, it would be wise to shop around.
Actually.... once pre-approved with one lender, the next guy doesn't need to take an application to quote rates/fees
So if you are just making sure you are getting a good deal.... It is a painless process.

Very important. Don't call and ask for rates/fees and not expect to have to answer any questions.
Rates/fees are NOT 'one size fits all'
0 votes Thank Flag Link Tue Jan 29, 2013
If you are not already working with a real estate professional contact one of us to give you advice and opinions.
Web Reference: http://thinkdallas.com
0 votes Thank Flag Link Tue Jan 29, 2013
If your in the middle of a transaction, NO. Talk with your Realtor and not us.

Kenny
Turtle Creek Realty
0 votes Thank Flag Link Tue Jan 29, 2013
Treat others as you would want to be treated. If you trust the LO that has already approved you work closely with them.

Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Tue Jan 29, 2013
Its always good to have options.
I believe from a buyer standpoint it is a very good idea to get pre-approved with a back up lender. This will give you options incase anything goes wrong with the loan. Also by obtaining your pre-approval from another lender it will also give you the ability to shop for the best rate and closing cost.Keep in mind though that there are other important factors to consider when choosing a lender. You will want to have someone that will return your calls quickly, work efficiently and in a timely matter so your loan closes on time. You should also look for one that will treat you as an individual rather than just another file so you understand every step of the way. It is wise to understand your options with lenders but remember at some point (early on) you will need to decide which lender you are going with as only one will order the appraisal, title work etc.
I do believe it is better to go with a Mortgage Broker as they have more options with underwritting guidelines incase the specifics of your loan or credit doesn't met particular lenders, they will have other options (lenders) to submit your file to without the need for you to fill out and resubmit all your paperwork.
Remember each lender will be pulling your credit which could cause your score to drop a few points. So choose which lenders to shop with wisely before allow anyone to pull credit.
Remember to ask for a Good Faith Estimate so that you can compare rates and cost associated with the loan. Its okay to send the GFE to another lender and ask them to met or beat the rates and/or cost.
Remember to ask lots of questions so that you understand the entire process, this is a huge step in life and even though their is always a little anxiety with purchasing a home you should feel comfortable and understand every step and what to expect throughout the process and after you close.
We are here to help!

Best Wishes!
0 votes Thank Flag Link Tue Jan 29, 2013
Hi,

I would suggest talking to at least one other lender. It's possible one is more knowledgeable about specific programs you might qualify for. If you need the names of some lenders to talk with, I would be happy to provide them to you.

Thanks,

Jeff
0 votes Thank Flag Link Tue Jan 29, 2013
You should compare what the charge, but interest rates are not every thing, look at closing costs and look at how much service they do or do not provide. the ley is choosing a local and trusted loan officer.
0 votes Thank Flag Link Tue Jan 29, 2013
Hello Tony,

It never hurts to compare services but, I would advise just take your pre-approval letter and find a home first. You may find a home that would only clear certain types of loans. So to keep having your credit being pulled to a minimum, feel free to give me call and I would be happy to find you a home.

Marlon Hopkins
Keller Williams Dallas & Park Cities
972-832-5110
0 votes Thank Flag Link Tue Jan 29, 2013
It certainly won't hurt to shop them.
0 votes Thank Flag Link Tue Jan 29, 2013
Probably a good idea:
You compaure their GFE's.
You did get a GFE?
0 votes Thank Flag Link Tue Jan 29, 2013
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