How to Compare Mortgage Lender Representatives with Ease

by Barbara from Ohio, USA

Ask Kate how to compare mortgage lender representatives with ease: Kate, If you are not supposed to show multiple applications on credit checks because it damages your credit score, how do I interview 3 lenders to see who would give me the best product?

Barbara continues... The lenders say they need all my info and to run a credit report to see if I qualify with them.

I am soooo confused how you go about getting a loan approved before you know what house you want to buy, yet I can't go find a house to make offer on without a lender already lined up. Help! Thanks Barbara

PS Where do I find the answer to this or other questions people ask?

Kate Answers: How to Compare Mortgage Lender Representatives with Ease

 Dear Barbara,

Let's unscramble the confusion. Choosing a lender or getting a credit report? Finding a house or getting pre-approved?

Which DOES come first? The chicken or the egg?

Actually, before those questions can be answered, let's discuss shopping for lenders. I think the best way to start is by talking with friends, relatives, neighbors and co-workers who have recently bought a home or refinanced their mortgage.

Ask who they used for their last mortgage. Were they satisfied with the outcome? Did they feel they were treated fairly?

Don't forget another excellent source, right at your fingertips, your Realtor. Agents work closely with mortgage professionals to close real estate transactions for home buyers. Realtors see the nitty gritty, receive feedback, and quickly learn the popular sources for mortgages.

So it makes sense to ask them where they'd be comfortable sending their mothers, sons or daughters for home loans.

Unscrambling the Credit Conundrum

Okay, now you have a few names of lenders and are ready to begin calling them. I understand your dilemma - how confusing it is to be told to protect your credit scores by limiting the number of credit checks, only to hear lenders tell you they can't help you without performing one.

But in the beginning, you are not contacting a lender to ask if YOU can be pre-approved for a mortgage, which of course requires a credit report. You are calling to qualify the LENDER!

I understand this is not a common practice. But think of it like this... a job interview! You will be hiring a mortgage professional to compile your paperwork and personal data, submit it to a lender, obtain your loan approval, and walk your transaction through to successful conclusion.

In plain English, the lender is responsible for securing your financing so you can buy the home of your dreams. That's why, before your credit report is ordered, it is important to ask questions, just as any employer would ask during an interview. Go here for my helpful questions to ask your mortgage lender.

To help you become comfortable in this role, I've also developed a six step method to compare one mortgage lender to another. To learn how, go to Compare Mortgage Rates and Lenders in 6 Simple Steps and then come back here so we can discuss your second question.

Unscrambling the Mortgage Pre-Approval Conundrum

Now that you've interviewed lenders and narrowed down your choices, it's time to get pre-approved for a mortgage. Which comes first? Do you shop until you discover your dream house and rush to be approved for a mortgage so you can make an offer to the seller?

Or do you start by asking how much you can borrow, shop for a house in the pre-approved price range, and then make an offer?

I suggest you browse through a few open houses in the neighborhood where you'd like to live. Then use my mortgage checklist to help you organize your paperwork and make an appointment with the lender of your choice.

Tell the lender representative you'd like to be pre-approved for the maximum amount. When you obtain your mortgage pre-approval, match up the required down payment and monthly house payments to the amount you can afford.

In a perfect world, you can afford the pre-approved amount and it will be sufficient to buy the size of home you prefer.

But more than likely, you will have to adjust a few numbers at this point. This process should not be rushed and THIS is why you want to experience the mortgage pre-approval process before you make an offer on a house.

Now this is important so please listen carefully. The amount of money the bank will loan you does not necessarily equal what you can afford. Go here to read more about mortgage pre-approval vs mortgage affordability. Don't miss this step. It's the secret to successful homeownership!

Ask Kate Answers at www.Get-Your-Best-Mortgage-Rate.com

You also asked how to find my answer to your question on my website. When I answer your letter, you receive an email (as long as you provided one) with a link bringing you straight here. Click the link and presto! My answer!

You will also begin receiving notices when I answer other Readers' questions, assuming you opted in for the emails. The same goes for comments from other Readers.

I've answered hundreds of Ask Kate questions over the years. For my Readers' convenience, I've grouped the letters by topic. You'll find the table of content to the Ask Kate questions and answers near the bottom of this page under the heading "You Can OWN My Brain". Enjoy!

Comment & Link

Barbara, one more thing. Is this page is helpful to you? I'd like to hear back from you.

You (or anyone else reading this) can comment on How to Compare Mortgage Lender Representatives with Ease. Or Ask Kate another question.

Would you like to send a link to this page for your friends and family to see? Or link to it from your website or blog?

Simply use this link --
http://www.get-your-best-mortgage-rate.com/how-to-compare-mortgage-lender-representatives-with-ease.html in your email, website or blog.

You Can OWN My Brain

HARP and HAMP Loan Modification Answers by Kate - Unique help for modifying your mortgage, HARP refinancing, and using the Making Home Affordable Program.

Lock Answers by Kate - Learn the nitty gritty inside story of locking your mortgage rate.

Ask Kate About Locking Mortgage Rates - The dilemma of locking mortgage rates continues with the most recent letters. Rate locks continued.

Refinance Answers by Kate - Refinancing brings out opinions, for sure! Get the facts here.

Refinancing Questions From Homeowners - The most recent questions on refinancing a mortgage. Refinancing continued.

Home Buying Answers by Kate - Learn how to buy a house. Unusual facts to aid your home buying experience.

Stories From Home Buyers - Kate's home buying visitors ask the most recent questions and tell their stories. Advice for buying a house continued.

Credit Answers by Kate - Improving credit could change your life. Find how to get more than temporary results.

FHA and VA Answers by Kate - Clear the fog. The low down on VA and FHA loan requirements.

PMI Answers by Kate - Private mortgage insurance, friend or foe? Do you know how to get rid of it?

ARM Answers by Kate - Do you have an adjustable rate home mortgage? You can ask Kate for help.

Answers by Kate For Seniors - Reverse Mortgage, the unique income answer for retirees.

How To Compare Mortgage Rates Online - You'll enjoy this collection of homeowner questions and experiences while shopping for lenders.

Kate's Mortgage Advice Forum - Savvy home mortgage questions and tips from readers to my website.

Mortgage News Opinions - Bold opinions of Joe Public regarding mortgage and real estate news.

Website Answers by Kate - Yes... Readers even ask Kate how to build a website.

Best wishes,

Home to
Best Mortgage Rates from How to Compare Mortgage Lender Representatives with Ease

Tell a Friend

Get Your Best Mortgage Rate depends on your word of mouth. Tell your friends about How to Compare Mortgage Lender Representatives with Ease on Twitter and Facebook using these convenient buttons.

The information you obtain at this site is not, nor is it intended to be, a substitute for financial, real estate or legal advice. You should consult an attorney, accountant, lender or real estate agent, as applicable, for advice regarding your individual situation. Comments and opinions found here are not necessarily those of Get-Your-Best-Mortgage-Rate.com