Getting A Mortgage Online [mortgageinsurance-101.blogspot.com]
Question by : To buy a house, Should you get pre-approved by more than one mortgage broker/lender? Some people advise me to check with different lenders,is that true? because I understand that I only need that letter to show the seller that I qualify to get a loan and nothing else, and later on I can still shop around choose any other lender, correct? Best answer for To buy a house, Should you get pre-approved by more than one mortgage broker/lender?:
Answer by the kid
You don't need to get preapproved by all of them, but you need to shop for good rate and terms.
Answer by falsi fiable
Pre-approval does not guarantee you'll get a mortgage. They just check the numbers to see if you're in the ballpark. Multiple pre-approvals is a complete waste of time. Rule of thumb is that you can afford a house that is about 3 times your gross annual income. Some people qualify for more based on their individual situation (mine is 4x). Rule of thumb #2: Your mortgage payment (principle, interest, property taxes, and insurance) should not exceed 28% of your gross monthly income. If you have no other debts (no car loans and you don't carry a revolving balance on your credit cards) you may have slightly higher limits. Your total debt load (mortgage plus auto and other minimum debt payments) may not exceed 38% of your gross monthly income. For best rates, you need 20% down and 740+ FICO. With less than 20% down you will have PMI (Private Mortgage Insurance). Learn more by reading "Home Buying for Dummies" available from your public library or independent bookseller.
Answer by Keren
Of course check with different lenders. After all, you want to get a good rate. Go to bankrate.com, click on mortgages, and type in your zip code. See what your local banks have to offer. Also call one small bank or credit union in your area. Remember that if the rate is too low, this could mean higher closing costs. After you make your choice, then you get the pre-approval letter from them. Even after you get this letter, you can still choose any other bank you want. Do you have time? There is a fantastic book at many libraries and all bookstores called Buying a Home for Dummies. (not an insult). There is so much to learn.... about home inspections, credit, down payment, mortgage requirements, realtors, getting a good price, and avoiding pitfalls.
Answer by Skye
It definitely helps to get pre-approved by a lender for a house. But you should try to pick the lender you want to go with, and maybe lock-in the rate so that when you find a home you're interested in you can jump on it and the transaction won't take as long. Many times a seller needs to sell the house quickly, and they may put a timeline on the transaction, so it is smarter to get pre-approved with the lender you intend to go with because that can make a big difference if you get the home or not.
Answer by Paul in San Diego
One of the advantages of using a mortgage broker is that you apply once, they preapprove you, and they get rate sheets for a number of loan products from numerous lenders that they help you choose from. They then make a commission on the loan from the le nder when the loan funds. And, the commission varies quite a bit based on things like the loan amount, interest rate, points paid to buy down the interest rate, etc. Basically, if the loan is better for the lender, the commission is greater. So, you just have to be on the lookout for a mortgage broker who will put you into a high-commission loan, when you could have gotten better terms from your own bank. However, with the varying commissions, a good mortgage broker might give you the option of going with a loan product that gives him a high commission, but he will then use part of that commission to pay some or all of your closing costs. They call this a no-cost loan and the advantage is that you don't have to come up with thousands of dollars in cash to close the deal. But, you will pay more in interest over time. And yes, even though you get preapproved through, say BofA, you can get the actual loan from whoever you choose. Preapproval isn't a guarantee that you'll even get the loan. It's just an indication of how much you can afford to pay and how much money you're going to have to come in with for a certain sales price. You still have to qualify with the actual lender at purchase and they have to agree to fund the loan for escrow to close. I'll also add that most sellers will not even accept an offer from someone who is not preapproved. So, that is the logical first step in the purchasing process.
LeahCoss.ca Slide Show Information Slide 1 Mortgage Application Checklist - Before house Hunting - What & Where? Detached House, condo, Townhouse City? Vancouver, Maple Ridge, Surrey? - Get a Realtor - Get Pre Approved Call 604.313.9996. Over the phone Pre Approval Fill out a Mortgage Application LeahCoss.ca Red button on right Or Mortgage Tools tab to print - Start Gathering Necessary Paperwork Income - Pay Stubs, NOAs, Job Letter, etc Down Payment Bank Stmts, Gift Letter Other Divorce or Separation Agreements, Bankruptcy Discharge, Business License, Certificate of Inc After House Hunting - All Paperwork BEFORE Subject Removal No Exceptions - Paperwork on Property MLS Listing for Property Property Condition Disclosure Statement Contract to Purchase & Sale - If Requested by Lender, Appraisal for Property - Specific to Property Septic or Well - Testing or title insurance Oil tank in yard Removal & testing Previous Drug Lab Environmental testing - Subject Removal Timelines Paperwork collected BEFORE, 3-5 days No paperwork, 5-7 days Property testing is needed, 2-4 wks - I will advise you of any other Lender Requests Other Resources More References & Information LeahCoss.ca Find Income Videos & Articles Credit Videos & Articles Down Payment Videos & Articles http MortgagesInVancouver Twitter.com MortgagesInVan Contact Info Fill Out an Application Today to Get Started http Red Button on the Right (Apply Now) Leah Coss Independent Mortgage Broker Ph. 604.313.9996 Fx. 1.877 ...
mortgageinsurance-101.blogspot.com How to Get a Mortgage Checklist
The best place to get a home loan or a mortgage is to go online and take a look at the rates that are offered so that you get the best deal. If you are looking for a mortgage for a home, the place to go is through an online bank rather than an off line bank. You can even get a property loan from another country when you know where to shop online.
Â
When you are looking for a private home loan such as a mortgage that will enable you to purchase a home of your own, you may have a difficult time getting one in the regular market off line. However, when you go online, there are many options that are open to you in the home loan market. When you are looking for money for a home, you can compare home loan interest rates and even fill out a home loan application right on the internet. You can get the money that you need to make your dream of home ownership come true when you know the place to get the home loan that you need.
Â
In looking for a mortgage, you want to keep an eye on the home loan interest that you will have to pay as well as the points that you need to pay for closing the loan.
You can often get a lower interest rate when you are looking for a home loan if you pay more up front by way of points.Â
You should also take a look at the home loan interest that you have to pay. There are basically three types of home loan interest that you can choose from when you are looking for a home loan. These include a balloon rate which allows you to pay the interest up front and then the principal of the loan. The principal of the loan is the amount that you borrow up front for the mortgage. You can also get home loan interest that is fixed.
This means that the interest rate will stay the same during the term of the mortgage. In addition, you can get an adjustable rate home loan that will adjust after a certain period of time. Generally speaking, you are better off to get the lowest home interest rate as possible.Â
You can complete a home loan application right online and then wait for approval. The home that you are buying will have to be appraised to make sure that it is worth the amount that you are spending for the property. You will have some closing costs, many of which can be rolled right into the mortgage if you so choose. If you are looking to buy a home, now is the best time as the prices of homes are at rock bottom. In order to get a home loan, you are better off to take a look at the rates that are offered online as well as the mortgage loans. This can give you a better deal than you can get from a bank.
Related Getting A Mortgage Online Topics
