Don’t ever let anyone run credit until you have selected the lender you want to work with

If you have a loan with an existing big bank and have paid on time for decades, they will offer you no prefential treatment than a customer that entered their bank for the first time and asks for a loan

White Coat: I completely disagree on processing being a junk fee. I hate them as much as you do, but it’s been the standard everywhere I have looked. If you didn’t pay one, there’s a good chance they collected it from you somewhere else, or somehow (parhaps by gambling on your rate lock by floating it down). In a case of one borrower with multiple loans, I feel that the processing should only have to be paind once.

A few things to hopefully share with the board about rate shopping. 1. Tell them you understand rates are based on scores and appraisals and that if your score comes in low, that you understand the rate probably won’t be available. If they refuse to quote you or give a good faith based on credit assumptions, it likely means they offer high rates and realize you’re not going to get a crappy loan from them. 2. Only work with lenders that can complete your entire loan in 30 days, with a 30 day lock. I would consider a 45 day lock at the most. Here’s why: when a lender “locks” a rate, they’re committing money to the loan for the duration of the lock period. The longer the lock period, the worse the rate. It costs the banks money to lock loans and the rate on a 30,60 and 90 day lock will be very different. If the lender is going to take 90 days to get your loan done, you’re not getting the best deal. 3. Big banks are likely to NOT have the best rate. They are guaranteed to have the worst service and you will feel pain during the loan process if you work with them. 4. 5. If you don’t need your spouse to qualify for the loan, don’t put them on the loan. They can still be on title. To me, there is only downside when adding unnecessary borrowers. 6panies listed on bankrate advertise by using bait and switch. Their advertisers offer rates terms that are literally unattainablepanies that advertise on the radio are a lot likely to be doing the same thing.

Don’t shop rates on different dates or times. Rates can change a few times every day, sometimes they don’t, but they do change every single day. Rates are historically inferior on mondays and fridays. I have seen it over and over, this is true.

When you’re ready to proceed with your loan, call up the few brokers that are competitive and tell them you’re going to lock your loan with someone in the next hour. Ask them for their best and final offer. By doing this, you’re comparing apples to apples.

For instance, if you call lender A on monday and lender B on tuesday, rates could’ve shifted considerably. Lender B might have a better rate, but the rates could’ve dropped from monday and you’re simply not comparing the same thing.

First, I should mention that I am not the same Joe that Inside-Outsider originally responded to – the one with the refi question. I’m the one who has responded elsewhere in this thread.

Additionally, don’t even give them your social security number, until right before the credit is run

“1. Don’t ever let anyone run credit until you have selected the lender you want to work with. Tell them you understand rates are based on scores and appraisals and that if your score comes in low, that you understand the rate probably won’t be available. Additionally, don’t even give them your social security number, until right before the credit is run. If they refuse to quote you or give a good faith based on credit assumptions, it likely means they offer high rates and realize you’re not going to get a crappy loan from them.”