When shopping for a mortgage...

Did you have to fill out an application for each place you wanted a quote for?

I first went to a broker got preapproved and now we signed the contract and looking for the best rate, I told him we signed a contract and now he sent me the application and its like 300 pgs and we have to send him all of our info-- but I want to shop around so is it normal to fill out these longggg applications for eahc place we want a quote from?


Whats the best way to do this. Thanks

Message edited 6/18/2013 12:38:37 PM.

Re: When shopping for a mortgage...

no- that's the mortgage app

you would just get pre-approvals from other banks- most of the rates are the same- some might have different programs availbale or a different level of service

Re: When shopping for a mortgage...

No. You should not sign the application until you are sure you want to go with him. He sent you that because he assumes you will be using him.

You can shop around for to other banks and get their rates, but that won't require an application.

Re: When shopping for a mortgage...

Ohhh phewww ok... So my next question, should I wait a little because we are not going to closing until Aug 7- do I wait until say July 7th and then make my decision on who Im going to go w/ and then fill out the application & sign then?

Re: When shopping for a mortgage...

And another question what ?'s should I be asking besides the obvious:

What is the rate?
How much is the underwritters fee?
Application fee?
Appriasal fee?
???

Thanks

Re: When shopping for a mortgage...

im prety sure you have 45 days to get a commitment from when the sellers sign the contract.
the rate is the rate which you can see online at any bank.
im my experience we got a discounted rate through our broker.
you can call any bank and they will you the rates and if they are lower then what your broker is giving you tell him.

Re: When shopping for a mortgage...

do not wait- once you are in contract you are suppose to be submitting the application

you have a certain date to have a loan committment by-

you are actually behind if you don't know what bank you are going it yet

When shopping for a mortgage...

I would definitely get moving on the mortgage process ASAP. It seems odd to me that you already have a closing date, but don't know any information regarding your loan, especially where you are getting it from. We couldn't even schedule a closing date until we locked in a rate and got the official commitment letter from our bank.

Re: When shopping for a mortgage...

Re: When shopping for a mortgage...

It's not ideal, but you can fill out the application, get the loan commitment from Lender A, and then decide to go with a different bank. I've had buyers switch lenders when they are far along in the process. Again, you really don't WANT to do this, but sometimes you find an amazing deal you can't pass up. But often times this means paying for two appraisals (most banks do the appraisal before issuing the loan commitment).

But as others have said - you need to look at your contract, because you don't have unlimited time to get a mortgage commitment. The standard provision is 45 days to get your mortgage commitment. But I've seen as short as 30 days. Technically, if you don't have the loan commitment in the time frame set forth in the contract, the seller can walk from the contract and put the home back on the market. Most of the time, that doesn't happen, or your attorney can communicate to the seller's attorney that you need an extension of a few days (and here's why). But you don't want to be in that position of having to ask for an extension and rely on the seller's (and their attorney's) good will.

The worst case scenario in a seller's mind is that a buyer doesn't get financing, so you don't want to drag your feet and put the deal at risk.

And yes - mortgage applications are long and onerous, and many banks are slow and will ask you for the same info over and over. But the sooner you get your stuff in, the better it is for you (you can lock your rate, and rates are going up, for example).

Usually, once my buyers get an accepted offer, I tell them to contact their mortgage lender and start pulling together the documents they'll need for the loan application. That way, once the contract is signed, we can hit the ground running and not waste time.