My husband and I are planning to purchase a home. And with the rates dropping, should we consult with several advisers? If so, how many?
Yes you should consult with several, but I don’t recommend more than 3 vendors. More than that and you will just have a hard time keeping track everyone is saying.
I suggest talking to: your bank/credit union, a direct lender, and a reputable broker.
Here’s how to take control of when your asking for quotes…
The biggest thing to remember is to compare apples to apples. For example: If you like the rate that is being quoted to you by one lender – then shop the fees of another lender based on that rate. OR if you like the closing costs quoted by one lender – shop the rate based on the closing costs you have in front of you.
For Example:
"Hello, this is (your name). I’m being offered a rate of 5.000% (always use 3 digits). What would your closing costs be at that rate?" No matter what – don’t tell that lender what closing costs you were quoted. Honest lenders/brokers give their best quotes the first time.
OR
"Hello this is (your name). I’m being offered a loan with $4000.00 in closing costs. What is the best rate that you can give me without going over that amount. In this example don’t tell the competing lender the rate that you already have.
**When comparing closing costs it’s best to get a Good Faith Estimate so that you can compare the quote line by line.
Once you’ve found the vendor with the best quote and you’re comfortable with them – you can begin to negotiate their fees directly. The key is that you will have the lowest starting price to begin with.
I hope that helps.
Advisors? For what? What you should do first is talk with several lenders in your area to see what financing programs are available and select the one that best suits your budget. The lender will pre approve you for an amount based on your whole financial picture. Next select a Realtor to work with. If you are going to try to purchase a short sale/bank owned or foreclosed property, select a Realtor that has experience dealing with this type of transaction and negotiating with lenders.
References :
Realtor
I always will consult with at least three different providers, banks, car dealerships what ever before I make a major purchase of any sort.
References :
find ONE mortgage broker who deals with multiple lenders – he will find you the best deal
References :
I think you would be wise to check with at least 3 lenders. But you have to be careful with letting them all pull your credit right away. Too many inquiries can lower your credit score. If you don’t feel comfortable with those 3, keep checking around.
What might work best is to get your annual free copy of your credit report, take it to the lenders along with a couple of months of pay stubs, a list of your debts (like car payments, student loans, cc debt, etc. How much you owe for each and how much longer you will have the payments), any other sources of income you want to be considered, information about your assets, etc.
With all that information, a lender or mortgage broker should be able to give you an idea of the loan programs that you would qualify for.
You might ask friends and family for lender referrals. If you have already found the real estate agent to represent you, you can ask your agent for lender referrals.
If you haven’t found an agent yet, you might want to put that on your "to do" list as well.
Good luck.
References :
TX REALTOR
Yes you should consult with several, but I don’t recommend more than 3 vendors. More than that and you will just have a hard time keeping track everyone is saying.
I suggest talking to: your bank/credit union, a direct lender, and a reputable broker.
Here’s how to take control of when your asking for quotes…
The biggest thing to remember is to compare apples to apples. For example: If you like the rate that is being quoted to you by one lender – then shop the fees of another lender based on that rate. OR if you like the closing costs quoted by one lender – shop the rate based on the closing costs you have in front of you.
For Example:
"Hello, this is (your name). I’m being offered a rate of 5.000% (always use 3 digits). What would your closing costs be at that rate?" No matter what – don’t tell that lender what closing costs you were quoted. Honest lenders/brokers give their best quotes the first time.
OR
"Hello this is (your name). I’m being offered a loan with $4000.00 in closing costs. What is the best rate that you can give me without going over that amount. In this example don’t tell the competing lender the rate that you already have.
**When comparing closing costs it’s best to get a Good Faith Estimate so that you can compare the quote line by line.
Once you’ve found the vendor with the best quote and you’re comfortable with them – you can begin to negotiate their fees directly. The key is that you will have the lowest starting price to begin with.
I hope that helps.
References :
me, mortgage broker/banker – 6 years.
I would certainly shop around. Most buyers get all hung up on the interest rate. The lowest interest rate isn’t always the best package for you. Many of those low rate loans contain pre-payment penalties, higher closing costs and other mechanisms to recoup some money for the lender.
So, when you are "consulting" – make sure you are looking at the entire package – not just interest rate.
References :
Oregon Realtor