Jane Madsen…,  in 60622

Another question tonight – The Loan Application!

Asked by Jane Madsen K., 60622 Mon Jan 7, 2008

My husband and I are first time homebuyers in the process of selecting a mortgage broker. We have talked to two separate brokers who both came highly recommended by friends and family, and are very helpful and personable so far!

My question is: One of the brokers asked us to complete a Residential Loan Application which we are in the midst of filling out as we speak. I would imagine we would do this twice – one for each of the prospective brokers – then the rates, etc. they each come back to us with after submitting the application will be what we base our decision on, correct?

It's a hefty amount of info to find and provide twice, that's why I ask if we're going about this the right way. Should we have already chosen the broker before this application process? Or are we on the right track?

Thanks in advance!

Help the community by answering this question:


Filling out a bunch of loan applications is overkill (especially if there is an application fee which I would never pay). The reason is most of the time you will use a Fannie Mae conforming loan, and there is one system that issues approvals that all banks use (called Loan Prospector or Desktop Underwriter). So each time you apply your info is being sent to the same system. One approval should be enough (ask whether it is Fannie or Freddie) then you can shop around for the best rate AFTER you have a real estate contract (since rates change two or three times a day you need to shop in real time).
Web Reference: http://www.1sthomegroup.com
1 vote Thank Flag Link Thu Feb 28, 2008
Hi newbie, congratulations on buying your first home!

First, run, don't walk to a Barnes and Noble or indie bookstore or whatever and get the Carolyn Warren book :
"Mortgage Ripoffs and Money Savers."

It will tell you how to evaluate mortgage brokers -- I hand a copy to each of my clients now, and they love it.

Alison Rogers
author, "Diary of a Real Estate Rookie"
Insider Real Estate Tips with a Twist of Humor: http://tinyurl.com/2ag28z
Web Reference: http://tinyurl.com/2ag28z
1 vote Thank Flag Link Tue Jan 8, 2008
Just go with NACA.com...You will be assured that you are getting a good deal and it is the lowest interest rate period!
0 votes Thank Flag Link Wed Feb 27, 2008
I think it is smart to talk with a few loan officers just to get a feel for how the system works. If you have questions ask, if you not sure what to ask, have someone you know who has some knowledge of the process give you hand.
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Tue Feb 19, 2008
It is very important to talk with several lenders and see which has the program that is best for you and your needs, but it may be over kill to make full applications with each one. One thing to keep in mind is that different lenders have access to different programs. As a first time home buyer in the city, probably the best program available is the city of Chicago bond program. This has a great interest rate, and a grant from the lender to pay your down payment and closing costs. This program is not available with all lenders, only mortgage bankers. Another program well suited for first timers is FHA. Again, some lenders offer this, others don't. My point is that it is important to shop around upfront, give the lenders all your information and see who has the best deal for your needs. Once you feel comfortable that you have the right lender and the right program, apply for a pre-approval with that lender. Once you have a firm pre-approval you can spend your time looking for the right home.

When you've found the home and have a contract, then you can compare what you have with some of the other lenders to make sure the program is still the best solution. If you are comparing rates, make sure you make your phone calls at the same time and that you are comparing the same programs and the same terms. I hope this helps.
0 votes Thank Flag Link Tue Jan 8, 2008
Real financial answers require real info from you. If applying for a loan was very easy, everyone would own a home...treat it like a challenge, climb the mountain of financials to reach your pinnacle of home ownership.
Web Reference: http://iansellsnola.com
0 votes Thank Flag Link Mon Jan 7, 2008
The loan application allows the mortgage lender to fully understand your financial psoition. It includes income, assets & liabilities via permission to run credit reports. If you want the best rates & terms you will need to submit a full doc loan application which necessitates a complete application. Sorry but there is really no way around it. Here is a blog I did regarding running multiple credit reports that may give you some peace of mind.

0 votes Thank Flag Link Mon Jan 7, 2008
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