As usual, I need some basic lending enlightenment. I’m planning on putting an offer in on a property in the near future, within a month or so. I currently own a home, which will be sold, hopefully at the end of Sept., after the 2 year tax period is up. It’s the only house I’ve ever bought. I acquired a loan through QuickenLoans, and my mortgage has been with IndyMac so I suppose that would be considered seasoned.
As I begin to actually shop for rates, unlike what I did for my first loan, I believe I can get much better terms from another lender. I have done some preliminary looking on bankrate.com and lendingtree.
What I wonder is this: how do I go about finding who can offer the best deal? Meaning: If I collect, say, 3 lenders that seem to have the best terms for my situation, and I call them, I’m assuming they will all promise me the world at first, but when I decide on one, and the paperwork starts rolling, and credit inquiries heat up, I’ll find that the terms or program I was told at first may not be what I finally can get.
Why that concerns me is that if I decide to revisit another lender, then they’ll have to pull a credit report, and so on. OR, when I call each lender in the beginning, will they do inquiries, immediately effecting my credit? In other words, can my credit score be effected by having lenders see what kind of rates they can give me when I start comparing? And is it common or problematic if I decide to go with one, but they change their tune after our initial meeting(can they even do that?) and I decide to look at another? I think I heard if I have a barrage of inquiries at once from several lenders, it will be assumed I am shopping for a home loan and it will not effect my score, but I’d like to be certain.
Or another scenario: since I’m seasoned with Quicken/IndyMac, should I look at them again? The difference in rates with my score looking at bankrate.com, from the lowest is 1st National Mortgage, 5%, 1 point, and QuickenLoans, 6.25%, 0.63 point and IndyMac is 6.25%, 1.06 point. That’s a huge difference.
OH! And also, as I plan to put an offer in on a place, but close on the new place after the closing on this house on Sept. 28, I’ll have to lock in a rate for possibly 60 days. I know it’s possible, at a fee, but do most lenders offer longer lock in rates? That could make a difference in the lender I wind up choosing, too. **I will also have to do a no-doc loan, making my search even more tedious (and a little more costly). I will say, QuickenLoans was great and very easy to work with and they have been helpful and eager to assist me again. Their rates are just high.
Does anyone have any insight as to how I should approach my new loan? Since I’ve only done this once, and am pretty sure I could have done better had I had some smarts at the time, I’d like to do it right this time and protect my credit as best as possible.