SHOULD I GET PRE-QUALIFIED WITH MORE THAN ONE LENDER?

Last updated on December 12th, 2017 at 02:46 am

Some home buyers are either terrified or intimidated by lenders. Not realizing the need for a lender in purchasing a home; unless they are purchasing the property in cash. The sooner the home buyer starts the pre-qualification process the easier their escrow would be. This is an issue that I am being faced with on a daily bases, explaining to home buyers the urgency of this step.

Most well-informed buyers understand the need to get pre-qualified for a mortgage prior to getting started with the home buying process. But what they don’t realize is shopping for the most competitive rates and fees among different lenders are essential! Almost every lender has different programs tailored for different buyers, with different rates and costs.  Good agents should persuade clients to contact more than one lender to discuss their mortgage needs and to find the best loan parameters for purchasing a home. You should get pre-qualified with at least one additional lender, if not more.

Almost never trust pre-qualification letters you receive from an online source. There are a lot of parameters taken into account to calculate the amount of loan you are qualified for! By completing an online application the lenders are not exposed to a lot of facts about your personal finances, for this reason the amount of loan client will actually get may be significantly less than what was quoted from the online sources.

Before starting the home previewing process, buyers should take their time to shop around for mortgages; while going through this process. Not only they will get informed about rates, fees and terms, they would also realize what loans they can qualify for. By doing this process the correct way, the buyer would not experience an enormous disappointment, wasted time and money.

I have seen this happen to many good people, and frankly I can’t stand it. Contact your agent or ask your family and friends to recommend a trusted lender that you can go to, and meet with in person to discuss your mortgage needs.

To get the most competitive rates you must shop lenders.  Happy house hunting!

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