Mortgage pre-approval questions!!!!

Asked by Bt, nj ny Mon Jan 14, 2008

Is it good to contact the bank directly or go though a mortgage
consultant or lender for a good deal on mortgage pre-approvals and approvals.

Is it going to cost for a pre-approval or the payment is due only on final applicatio nfor mortgage ?

Any good referals in NJ Monmouth county ?
Appreciate your advises.

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Answers

8
Ricardo Bueno, , Los Angeles, CA
Mon Jan 14, 2008
Payment is only due after you sign final loan documents (a.k.a. Loan Docs) and you close escrow. You'll get a Mortgage Statement in the mail from your mortgage servicer at which point payment is due. If "anyone" says attempts to charge you up-front for a pre-approval...run! Don't walk, R-U-N-! You don't need to pay for a pre-approval from either a Mortgage Broker or a Lender. In fact, the only payment necessary will be that of an Appraisal.

As for the "Mortgage Application Process," you can read this article: http://www.industry-report.com/ricardobueno/2007/11/the-mort…

If you gather your documents before you start "shopping" for your mortgage, you'll effectively be able to bait lenders against one another.

As for the "Broker v. Banker Debate," you can read this article:
http://www.industry-report.com/ricardobueno/2007/11/the-brok…

Truth be told, it doesn't matter whether you work with a Broker or a Banker. I'd choose whoever gives you the better rate and at reasonable costs! This quote sounds fitting:
"As much as possible, deal only with good and honorable people. If you deal with good people, you won't need a contract, and if you are dealing with bad people, no contract can protect you."
Adam M. Aron
Chairman and CEO of Vail Resorts, Inc.

I believe these two articles should have effectively explained the mortgage application process and pre-approval process to you. What's more, you should have gained a deeper understanding on the differences between Brokers and Bankers. If you have any additional questions, please do not hesitate to contact me:
- Via email: rbueno@worldwidecredit.com
- Phone/Text @ 323.810.2175
2 votes
John Leston, , Shrewsbury, NJ
Wed Jan 16, 2008
I am a Private Mortgage Banker in Monmouth County. When looking for a pre-approval, there are no fees associated with that process. Once you find a home and have a signed contract that has come out of attorney review, you may have to pay for an appraisal, depending on the institution. Feel free to contact me at jleston@arlingtoncapital.com
0 votes
Jean Doyle, , Mt Arlington, NJ
Tue Jan 15, 2008
Pre-approval should always be free. When you find your home that you want to purchase and need to lock on a rate and complete your application you may start to incur fees. It is wise to shop around, so contacting a bank and a broker wouldn't hurt and may get you the best terms. A broker I frequently work with is Sandy Davis from Residential Home Funding http://www.sandydavis.org and you can also talk to Marianne Maher from Wells Fargo http://www.wfhm.com/marianne-maher
I wish you well in your home search!
0 votes
Lori Turoff, Agent, Hoboken, NJ
Tue Jan 15, 2008
You can also take a look at http://www.bankrate.com to compare rates from all different sources.
0 votes
Gabe Bodner, Agent, San Francisco, CA
Mon Jan 14, 2008
I am a mortgage professional and I have worked for several companies including direct lenders and mortgage brokers. A consumer is actually better served by working with a reputable mortgage broker who has many more sources of loans than just one lender. A direct lender sometimes has more flexibility however, a mortgage broker has access to more lenders, which gives a broker the ability to offer more competitive interest rates. You can view my website for my information at http://www.BayAreaHomeFinancing.com.
0 votes
Sharon Kozinn, Agent, Hillsdale, NJ
Mon Jan 14, 2008
You should never pay for a mortgage pre approval. A reputable company will never charge for that service. Going directly to a bank is fine, you want to compare rates when it comes time to commit to a lender. If you contact me through my website, I can put you in touch with the Coldwell Banker rep I work with. You can get pre approved with a short phone call.It is a great time to buy, rates are at their lowest that they have been at in 2 years!

Sharon
Web Reference:  http://www.sharonkozinn.com
0 votes
Brian Burke, Agent, Highlands Ranch, CO
Mon Jan 14, 2008
These guys are very god and work most states http://www.americansummitmortgage.net
0 votes
terryriw53, Agent, Sewell, NJ
Mon Jan 14, 2008
Money is generally due when you complete the mortgage application for a loan. Reputable mortgage brokers do not charge for pre-quals/pre-approvals.
0 votes
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