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Started By
Message
Buying a house. Competing lenders. Timeframe question
Posted on 4/17/13 at 7:56 am
Posted on 4/17/13 at 7:56 am
I plan on signing a purchase agreement in the next couple of days. I am a first time buyer and am new to the process. I was advised consult several lenders to in order to find a good deal. At this point, I have been pre-qualified by two lenders I have been in contact with. I also plan on contacting two other lenders. My question is this: at what point do I decide on who to go with?
The purchase agreement stipulates that I provide a preliminary loan approval letter within 3 days of acceptance of the agreement. So I am assuming this means once they accept the agreement, I will have to decide on a lender within 3 days?
I have yet to get quotes from any of the lenders on charges for their services, the mortgage rate they can get me, or the monthly note they can get me. Is all of this something they can get me within a day or two? Is it possible to switch lenders after providing the seller with a preliminary loan approval letter? TIA.
The purchase agreement stipulates that I provide a preliminary loan approval letter within 3 days of acceptance of the agreement. So I am assuming this means once they accept the agreement, I will have to decide on a lender within 3 days?
I have yet to get quotes from any of the lenders on charges for their services, the mortgage rate they can get me, or the monthly note they can get me. Is all of this something they can get me within a day or two? Is it possible to switch lenders after providing the seller with a preliminary loan approval letter? TIA.
5
Posted on 4/17/13 at 8:17 am to PhiTiger1764
No, you don't have to use that lender, just show seller that a lender will finance purchase of home. But I'm sure you have a timeline of when appraisal needs to be ordered, so you need to hit that date to comply with contract language. In Mid TN, within 10 days on 30 day closing is pretty standard language
Posted on 4/17/13 at 8:27 am to PhiTiger1764
The numbers are likely to be close between all the lenders. What they can charge you is heavily regulated. Choose one you're comfortable with and move forward.
Posted on 4/17/13 at 8:37 am to ItNeverRains
From purchase agreement:
Preliminary loan approval must stipulate:
1) a loan application has been made
2) a credit report has been obtained and reviewed by the lender
3) a preliminary loan commitment has been secured from the same lender
4) financing equal to the loan amount provided is available to complete the transaction.
The language in stipulation #3 is what caught my eye. Does this just mean that the lender is confirming they will provide me with the loan?
Preliminary loan approval must stipulate:
1) a loan application has been made
2) a credit report has been obtained and reviewed by the lender
3) a preliminary loan commitment has been secured from the same lender
4) financing equal to the loan amount provided is available to complete the transaction.
The language in stipulation #3 is what caught my eye. Does this just mean that the lender is confirming they will provide me with the loan?
Posted on 4/17/13 at 8:54 am to PhiTiger1764
A preliminary letter means that they've reviewed your financial data and that if all the information is verified you should receive final loan approval based on the information.
Posted on 4/17/13 at 9:06 am to PhiTiger1764
quote:
The language in stipulation #3 is what caught my eye. Does this just mean that the lender is confirming they will provide me with the loan?
Yep.
But as stated earlier check contract for date appraisal needs to be ordered by. Make sure you hit that date to not breach agreement. Don't pick a lender on Thursday for an appraisal that needs to be ordered Friday
Posted on 4/17/13 at 9:14 am to ItNeverRains
quote:
ItNeverRains
quote:
VABuckeye
Thanks!
Posted on 4/18/13 at 7:58 am to PhiTiger1764
Here is a question. Are you going to go with the absolute cheapest lender? Is the only thing you are comparing is price or are there other considerations as well?
For the cheapest price, Amerisave would be the choice, however, you get no originator to work with and may not close on time, if at all.
Do you only consider price/rate when choosing?
For the cheapest price, Amerisave would be the choice, however, you get no originator to work with and may not close on time, if at all.
Do you only consider price/rate when choosing?
Posted on 4/18/13 at 11:27 am to PhiTiger1764
what loan program are you going with,conventional bank loan, govt loan,
are you putting money down,
when shopping lenders,, you cant compare overall total closing cost,
the only true figure to compare apple to apples is what is the rate they are quoting you that day and if they are charging you any points, all other figures wash out because they dont know your taxes , homeowners insurance and they are giving you a rough idea on title fee's.
let me know if you need help, i'm a mortgage broker here in baton rouge,
are you putting money down,
when shopping lenders,, you cant compare overall total closing cost,
the only true figure to compare apple to apples is what is the rate they are quoting you that day and if they are charging you any points, all other figures wash out because they dont know your taxes , homeowners insurance and they are giving you a rough idea on title fee's.
let me know if you need help, i'm a mortgage broker here in baton rouge,
Posted on 4/18/13 at 7:26 pm to novabill
quote:
Do you only consider price/rate when choosing?
This is not the only thing I will consider, but it is very important. I have gotten recommendations from people I trust who know more about this process than I do.
quote:
may not close on time, if at all
This would not be acceptable.
This post was edited on 4/18/13 at 7:30 pm
Posted on 4/18/13 at 7:28 pm to lsu tigerdog
quote:
what loan program are you going with,conventional bank loan, govt loan,
are you putting money down,
conventional, 5% down. I plan on living here 5-7 years or so.
quote:
when shopping lenders,, you cant compare overall total closing cost,
the only true figure to compare apple to apples is what is the rate they are quoting you that day and if they are charging you any points
I was told that the rates should all be about the same.. but that the area that lenders have some leeway are in the origination fees..
Posted on 4/19/13 at 1:08 pm to PhiTiger1764
with todays pricing and with a 740 score and above, you can get 3.5% with no origination/points. on top of that we dont charge any other junk fee's,
only closing fee's you will have is the fee from the lender, title and setting up your escrow acct.
let me know if you're interested in hearing more.
no obligation
also remember on the conventional pricing, it can change on an average twice a day
only closing fee's you will have is the fee from the lender, title and setting up your escrow acct.
let me know if you're interested in hearing more.
no obligation
also remember on the conventional pricing, it can change on an average twice a day
Posted on 4/19/13 at 2:09 pm to lsu tigerdog
Tigerdog, I've been working with a lender that is offering the following (my credit scores were all 800 plus):
First time homebuyer; conventional loan, purchase price $210000, 3% down, 4.25 interest rate but no additional PMI, total in closing cost and down payment is roughly $10,000.
They are telling me the increased rate is to avoid PMI.
What's your thoughts; is this a good program?
First time homebuyer; conventional loan, purchase price $210000, 3% down, 4.25 interest rate but no additional PMI, total in closing cost and down payment is roughly $10,000.
They are telling me the increased rate is to avoid PMI.
What's your thoughts; is this a good program?
Posted on 4/19/13 at 6:35 pm to WhoGeaux
Whogeaux,,You're buying out the pmi. I can check buyout cost again based off down payment and credit score. I think rate is a little high but I can price it out. Quick question, are they charging you any points/origination. What's your email adrs to give you more info.
Posted on 4/19/13 at 6:48 pm to lsu tigerdog
Can I get an email from you, maybe starting the process soon
Posted on 4/19/13 at 8:01 pm to PhiTiger1764
just a fyi... if you go with a small lender/mortgage company, the loan will more than likely be bought by a larger bank
Posted on 4/21/13 at 9:02 pm to burgeman
Email me anytime at cinchausty@keylendingsolutions.com.
Here locally in Baton Rouge
Here locally in Baton Rouge
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