This is to help not as much active rain newbies but especially all those new to the game completely. I had a client ask about "shopping a rate" This is what I responded with. Thought some of you may could use it to send to your clients when they ask you the same thing!! Try to get them to gather the GFE on the same day or two since rates change so much. Then you can sit down and help them analyze them all if you are comfortable with that and they have that need. If they are like me then they are confused about points/discounts/prepaids/closing cost and why they vary so much from place to place. Time to be the expert and ease their feelings and confusions! Have a great day!
You want to ask each lender for a "good faith estimate" This will list all there fees, interest rate, and what your monthly payments would look like. After you have one do it then you are pre qualified and if you want to use just a part of that if you qualify for more than you want to spend. You will also know your credit scores, request this if not given after the first one. Then when you "shop" your rate you can tell each lender or mortgage company what your score is. If they pull it anyways then it wont hurt you. If you get your score pulled by several similar type lenders for say a house loan then it wont hurt your score as long as it is within the same 30-60 day period. All this can and should be done before you know what house/condo you want. Once you get a contract on a place then you send a copy to the lender you want to use and officially apply for the loan. Several bits of paperwork is needed to do that such as tax records, and various things which may include bank statements, pay stubs and other things. Hope this helps. Feel free to ask more questions!
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