Can I lock a home loan rate with more than ONE lender ?
So is it good to go with a broker than a lender directly ? Will I get a better rate from a broker than a lender directly ?
This is one of the reasons lenders have application fees. We order and pay for appraisals, flood certs, title work (not the cost of a policy but they do get paid for the work they did whether the loan closes or not)…all that stuff costs money, plus they do have to pay me, even though this is so much fun. If you make a bunch of applications, you’ll pay a bunch of app fees. Some lenders will charge a rate lock fee too. These may or may not be applied to your closing costs, but if you don’t close, the fees are forfeit.
Can I lock a home loan rate with more than ONE lender ?
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Sure, BUT you will need to make formal loan application with each of these lenders and this could actually lower your credit score.
PLUS, if this is a longer term lock (more then 30 days) you will usually need to pay a nonrefundable lock in fee.
I really doesn’t make sense to do this.
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This is one of the reasons lenders have application fees. We order and pay for appraisals, flood certs, title work (not the cost of a policy but they do get paid for the work they did whether the loan closes or not)…all that stuff costs money, plus they do have to pay me, even though this is so much fun. If you make a bunch of applications, you’ll pay a bunch of app fees. Some lenders will charge a rate lock fee too. These may or may not be applied to your closing costs, but if you don’t close, the fees are forfeit.
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Sure can. Brokers usually do that anyways. That is the advantage of going thru a broker versus directly thru the bank. A broker has access to many different lenders all at once while your bank only has their own guidelines. Also, a broker will pull one credit report and each lenders system can repull that same credit report so that your credit isn’t getting pulled several times.
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Regarding the broker question: yes and no. The broker makes anywhere between $500-$1500 off of your loan and you may have to pay him more than that, depending on the broker. The broker does all the leg work for you. If you want to save yourself some money – go to the banks yourself. If you don’t have time, then go see a broker. But the broker gets the same rates that the consumer does.
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