I got a preapproved by a lender who quoted us with a 6.6% interest rate. However, that seem high to me. If I want a lower interest rate, should I go to a different lender? But since I already got preapproved by the first one, do I need to send them my documents (W2, income, etc) again? Can finding another lender help me give a lower interest rate?
2007-11-17 11:47:56 · 6 answers · asked by James P 1 in Business & Finance ➔ Renting & Real Estate
Get on the phone and start calling around. You should have enough information to get a meaningful estimate from several sources. Tell them you've already qualified at 6.6%, but if the new lender can do better, you'll go with them.
You would shop around for a car. You would shop around for a plane ticket. So why wouldn't you shop around for a mortgage?
The new lender does not even need to pull your credit or see any documentation to give you an estimate.
When I bought a home in April, the first estimate I got was 7.25%. It was from the lender holding my previous mortgage, on which I never missed a payment. Thinking that was high, I called around to several other lenders and wound up closing at 5.5%. Shopping around saved me about $2000 a year, or $60,000 over the life of the loan.
When the lender thinks you're going with them no matter what, you'll get hosed. When the lender knows they need to compete, you'll get competitive rates.
The pre-qual if basically meaningless. It just lets the RE Agent and Seller know that you have a reasonable chance of getting financing. But it in no way locks you in with the lender.
2007-11-17 12:43:16 · answer #1 · answered by CJKatl 4 · 1⤊ 0⤋
The rate is not the only thing in question, but also the cost of getting that rate.
You can always get a second opinion. Here is a service that provides 2nd opinion mortgage quotes from a direct lender without charging broker fees: http://www.mortgagezapper.com
2007-11-18 11:04:09 · answer #2 · answered by Anthony 3 · 0⤊ 0⤋
You might be able to get a lower rate at another lender. But yes, you'll have to show the new lender all of your info for them to evaluate you.
2007-11-17 13:01:46 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
that isn't a undesirable cost pondering your score is six hundred and you're in basic terms borrowing $5k on a used automobile. i'm confident in case you have been paying for a sparkling automobile it would have been extra applicable. while paying for the motor vehicle you may ask the broker if he can beat the fee and if he can great you saved a pair of greenbacks and if no longer that's ok too! in basic terms make confident if he does the words etc are the same. All and all that isn't a undesirable cost for the situations.
2016-10-17 03:14:11 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You are not locked in with them. Get a few quotes.
2007-11-17 12:59:46 · answer #5 · answered by Anonymous · 1⤊ 0⤋
1. yes.
2. yes.
2007-11-17 11:56:04 · answer #6 · answered by #### 1 · 0⤊ 0⤋