mortgage pre-approval

[artistache]

As a potential first-time homebuyer (we own a house we built ourselves with cash on land we paid for in cash, so the process was totally different), I am a little befuddled by where to begin the process. We're not in a hurry at all, and we're in a tight market, so we want mortgage pre-approval just so real estate agents will take us seriously. How do you decide where to go for that? Any tools or resources to help us narrow the field of options in mortgage lenders?

[matchewed]

The mortgage pre-approval from what I've seen is only to get your foot in the door with a real estate agent. It doesn't even have to be with the bank you eventually get the mortgage from. I wouldn't sweat it personally. Just go with whomever.

[Cwadda]

A pre-approval can be had from any sort of bank. Though I'd start talking to mortgage people who you want to work with.  A good mortgage person goes a long way.  Nothing wrong with interviewing a few.  Make sure they understand your needs 100%.

[tralfamadorian]

How do you decide where to go for that? Any tools or resources to help us narrow the field of options in mortgage lenders?

With mortgage lenders bigger is not better- start with your local community banks and credit unions.  Aimloan and PenFed are well known for having very good rates.  Also you are under no obligation to use the bank that gives you preapproval for the actual loan so don't worry at this point about getting the best rate. 

[Finallyunderstand]

I agree with the above poster that bigger is not always better.  In my area the local banks HEAVILY outperform the national banks and their customer service is often better as well since you meet someone in person. 

Also, if you know a realtor, ask them.  They often have first hand knowledge of which lenders do the best job.

[Cwadda]

How do you decide where to go for that? Any tools or resources to help us narrow the field of options in mortgage lenders?

With mortgage lenders bigger is not better- start with your local community banks and credit unions.  Aimloan and PenFed are well known for having very good rates.  Also you are under no obligation to use the bank that gives you preapproval for the actual loan so don't worry at this point about getting the best rate.

Yes, +1 for in-state lenders, small/local community banks.  These save you lots of headaches.

[Dicey]

Mortgage pre-approval and mortgage pre-qualification are not the same thing.

DH and I are slways on the hunt for our next project. We keep a current pre-qualification at all times. It helps to make your offer stronger, because it proves you can get the loan. It does not mean you have to get your loan through that specific lender, nor does it guarantee you the best rates, as they change all the time.

BTW, I have belonged to a great credit union since I was a child. My account number is actually 123-33. I have procured at least 6 mortgages, and they've never had the best rates, so don't take that advice as gospel. I have had good luck with local lenders. I've also done well with a mortgage broker with loans from institutions I'd never even heard of. One thing I do appreciate is getting a loan from someone who intends to keep it. My first mortgage was the smallest I've ever had. It was sold repeatedly, which was a complete pain in the ass.