Is it ok to work with 2 loan agents at the same time?.?

Asked by bhonorine, Campbell, CA Thu May 30, 2013

I'm working with one loan agent and they are processing my loan. But I'm not really comfortable with them as their interest rate is very high. Is it ok to ask another loan agent to process my loan? Should I tell the 2nd one that I'm not really confident on the first one?

I want to pick the best one eventually. If one doesn't work out, I can still have a backup. Is this common? Will it impact my credit score since they both need to check my credit score?

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9
Mitchell Pea…, Agent, San Jose, CA
Thu May 30, 2013
Bhonorine:

Yes it will affect your credit score. I suggest you ask your loan agent why the interest rate is high. Is it because of the type of loan you need, poor credit history, high loan to value? Is your loan agent a loan broker? If so, that may add $ to your cost in order to pay his fees.

Assuming all is well with your ability to get a loan and you want to shop around, you should consider using a Correspondent Bank A correspondent bank writes loans in its own name for other larger banks, sort of like a teller window for those larger banks which will actually service your loan after your first payment. No broker fee is involved. The larger bank saves on its underwriting costs by having the correspondent write the loan for them. The correspondent bank saves you money by matching your loan to the bank that is giving the best terms the day you are ready to commit to a loan and it can be locked. A correspondent bank usually originates loan for about a dozen of the larger banks. Thus, you have one application that is used to find the best rate among about a dozen banks.

With a loan broker, the broker is only finding the borrower for the large bank. The large bank still has to underwrite the loan itself, so there is no savings for the large bank that can be passed to the anyone as a way of covering costs of your loan origination. The broker's fee is basically an advertising charge to the bank that resulted in getting it a customer. That fee is passed on to you.

Mitchell Pearce
408-639-0211
mitchell@handsonrealtor.com
1 vote
seller0101, Home Seller, San Jose, CA
Wed Jul 17, 2013
Is there any rate difference if it is a Fourplex rather than Duplex.??
0 votes
, ,
Tue Jun 4, 2013
Two things

Rates have been very volitile lately. Lenders are not always upfront about what their actual rates are, so when you come accross a lender who tells you their honest rates, it may seem high.

Has either of these lenders locked in your rate?

It may be that they are quoting you a fair and accurate rate.

If you want to call me, no cost or obligation. I will be able to tell you one way or the other. If your current lender is being fair with you. I will tell you so.

949-930-1210
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Fri May 31, 2013
Hi B:

Provided you are searching for loans BEFORE you get into a home contract, you can talk with as many loan agents as you'd like to get a price and loan that you can both afford and for which you are comfortable.

But, I might suggest, that you consider obtaining a loan preapproval from a major bank.

While I know there are wonderful loan officers out there, when I'm submitting offers to a seller on behalf of my client buyer, sometimes, it's the "name" of the bank that can make the difference between the successful purchase or not.

So I usually ask my buyers to get preapproval from a major bank (B of A, Wells Fargo, Chase, etc.) to help in the "offering" stages of your home purchase.

Good luck!
0 votes
Juliana Lee, Agent, Palo Alto, CA
Fri May 31, 2013
Your real estate agent should be able to give you good advice about loan agents who deliver good loans on time. Different lenders have different criteria. Occasionally I've had buyers who were turned down by one bank but approved by a second. In some cases applying to two different places is a good strategy.

Yes, you want to tell the lenders that you are seeking a loan from another lender. The second loan agent can often tell you what he can deliver without running a credit report.

If you have a home purchase in escrow be sure to meet the specified times. If shopping for a loan causes you to miss a specified date, the penalty can be higher than the savings from shopping for the best loan.

General real estate mortgage information at: http://julianalee.com/reinfo/mortgage.htm

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650-857-1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
.
Web Reference:  http://julianalee.com
0 votes
Allan Lorenzo, Agent, MILPITAS, CA
Thu May 30, 2013
It should not affect your credit unless you ran it several times in a single month. If you are not comfortable with your current loan agent, you should let him/her know about it and tell him/her that you want to work with another loan agent. I think everybody needs to be treated that way. Remember the "Golden Rule". As for which type of lender to work with, despite all the sales hype, there is NO essential difference between a so-called "direct lender" and mortgage brokers. If your lender is NOT a (FDIC) "depository", they are a broker. Direct lender simply draw loan documents in their own name and ship the loan to one of the major banks.
0 votes
Abu Musa, Agent, New York, NY
Thu May 30, 2013
In a nut shell you may work with yhe best agent.
0 votes
, ,
Thu May 30, 2013
First of all you can work with many agents as you can, 2 or 3 or... But in order to avoid running your credit report 2 or 3 times you should pick up one loan officer or company which will run your credit report once, and based on your financial information will pre-approve or disapprove your loan application at the best market rate available before the processing of your loan. As result you will have a peace in your mind that: 1.You will your loan closed and 2. You will get the best rates possible on the market. That is exactly what we do at my company - http://www.calsunmortgage.com.

Unfortunately our consumer is not educated today enough about home mortgages. There are thousands of mortgage professionals and lenders who are constantly and sometimes on purpose trying to avoid this subject. That's why you can't shop around in proper way and to get the best possible mortgage.
0 votes
charles butt…, Agent, san jose, CA
Thu May 30, 2013
I recommend that if you have doubts about your current loan officer, that you might want to consider looking for another loan officer.

Mitchell Pearce who answered your question below is one of the best in the business. I recommend that you contact Mitchell Pearce, to see if you meet the criteria of Mr. Pierce, and if are eligible for financing through Mr. Pearce. If you can get Mr. Pearce as your loan officer, you cannot do better than that.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
0 votes
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