Question : How do I choose a bank for pre-approval on a home loan?
I'm currently renting an apartment and want to purchase a home. I first need to get pre-approved for a home loan so I know what type of house I can afford. What should I look for in a bank when considering a home loan? Should I stay with the bank I currently have a bank account with or look at other banks also? If I contact a bank, are there specific questions I should ask to know if they'll give me the best loan offer?
- asked by ★skyblue
All Answers:
Answer #1
I purchased a home in the states several yearsago. First off, I researched and found the averageintrest rates (at the time, 5 percent). I thentook this information and refused to acceptanything but the average and naturally anythingbelow it. My relator had several lending agencieslined up. Perhaps you arent using a relator? Noproblem! Simply call up lending agencies...honestly, it was as easy as calling them up andasking what the going rates are, seriously. Idealt directly with the owner/leader of a lendingcompany and even later saw him on localcommercials advertising their buisness. They WANTto work with you, they WANT your buisness. Contactthem.
- answered by Harley
Answer #2
My preference is to deal only with banks and notmortgage brokers. Compare the interest rate,points, and closing costs with your favorite bankand a few others to get an idea. Give all of themthe exact same information in order to make a goodcomparison.If you give them your SSN then theywill run a credit check on you. Don't do thisunless the bank is on your short-list of possiblelenders. Too many credit checks will lower yourcredit score.You can negotiate a few things on theclosing costs and maybe even the rates and points. I prefer loans with zero points.Any lender cangive you a pre-approval for free. You don't haveto pay for anything until you actually submit aloan application.Good luck.
- answered by chonudi
Answer #3
Contact several banks and brokers (brokers usuallyhave better rates but charge a small fee atclosing) brokers also have more options to finddifferent loan programs. Provide tehm with theinfo they request and ask them for a Good FaithEstimate and truth in lending which will have yourcosts. At the first one have them run yourcredit, then ask for a copy of the report (theyhave to provide this to you if you ask). Theother brokers or lenders can work off of thatinitial credit report until you select a specificbroker or bank and then they will run your credit. Not to worry about too many inquiries allmortgage credit checks within 30 days are shown asone. Also, if there's one broker you like butanother offers a better rate don't hesitate toshow them the other's Good Faith Estimate and seeif they can offer you the same thing. Brokershave more leniency in what they charge so you maynot be able to do that with a bank, but it's worthtrying. good luck.
- answered by lepr0kan
Answer #4
It sure wouldn't hurt to check with the financialinstitution that has your other accounts.What youwant to be sure of is that you are comparingapples to apples. A good faith estimate ofclosing costs will be needed, what rate you arereceiving, are there any points, and other'catches' - for instance pre-paymentpenalties.Lenders do this all the time, and canget caught up in financial jargon. This can be abit overwhelming if you dont speak the language,so make sure you understand everything before youwalk out of the office. Even better, geteverything in writing so you can spread the offersout on the kitchen table and choose fromthere.Good luck!
- answered by godged
Answer #5
There are hundreds if not thousands of websites onthe internet enumerating the ways to apply andreceive home loan when you are plagued with badcredit issues. These sites help consumers with badcredit scores to increase the viability of theirexisting credit scores and set up loans regardlessof their credit history.Companies that specializein bad credit home loans; usually offer a widerange of options for consumers with badcreditBadcredit hasn't stopped them from purchasing a home.There are several programs available for peoplewith bad credit that helps to restore their creditstatus and to live debt free lives.
- answered by Camila B
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