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     | Wednesday, April 04, 2001 - 08:56 am  Called around today to different mortgage co & the bank we have used for 5 years. I explained in detail our situation. ALl wanted us to fill out an application for pre-approval. No charge. My question is, is it a bad idea to apply with all three at the same time? Two company's were for FHA the Bank was for an in house loan. Do all mortgage co get FHA approval through the same source? Thanks Becky
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| | Wednesday, April 04, 2001 - 10:09 am Very good question, I think it's a bad idea. Please read Loan Shopping and then post any questions. One thing I have to add is if your credit isn't excellent, AND you are looking for non FHA loans, you should apply with ONE broker so you get the reports from all 3 bureaus WITH all 3 scores.
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| | Wednesday, April 04, 2001 - 01:56 pm I know our scores & what is on the CR's. both of us Experian 560, TU 541. Equiafax me 751, husband 560. One co has pulled the cr they were the one that said about paying off the included in Bk 13 CC that were charged off/discharged/closed. They all three want us to fill out an application for even pre qualification. The conventional loan was with a bank. The FHA was with mortgage co's. If we apply with in 14 days for all three wouldn't it come back as one inquiry for the CR? We have had really bad experiances since we have been in Fl with lending institutions. Like bait & switch at signing & not having a choice. I just wanted to have options on a lender. Becky
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| | Thursday, April 05, 2001 - 05:32 pm Here's the deal: 1) If you apply with 3 lenders and you want 3 options at closing, you have to get 3 credit reports, 3 appraisals, 3 sets of prelims and 3 termite inspections. 2) Even in pretty big cities like San Francisco real estate and loan people would often find out that a client was working with the competition too. It would be very difficult for a broker NOT to notice that your loan is processed elsewhere. Sometimes it is a SURPRISE when they try to lock a loan right after application and the lender already has the borrower's ss# from another lock. I once had a buyer get a loan from BofA instead of taking the MCC loan I had lined up, and I have no idea why. That I couldn't legally require a borrower to at least pay a cancellation fee is one of the reasons why I quit mortgage brokering. If I have to work for free, I'll do it here were hopefully more than one person benefits. *I* would not double app, but I would get WRITTEN quotes, do my homework, and then decide to work with ONE broker. If I later had a "service" problem, I could move my loan very quickly. And I know I wouldn't have a RATE/TERMS problem because I got their fee in writing before they get my sig on the application. If you have your pre-APPROVAL and the broker quote with their fees, there's not that much that can go wrong. If we apply with in 14 days for all three wouldn't it come back as one inquiry for the CR? No, not unless your scores are obtained on the "right day." Lets say you have MORTGAGE inquiries April 5 and April 15. Then you apply elsewhere on May 25. You'll have 2 COUNTED inquiries because the scoring software combines the inquiries in the previous 2 week periods. You count backwards from the May 25 date. All mortgage inquiries in the previous 30 days are ignored. Then the inquiries in the 2 week periods prior to April 25 are combined. There is ONE, April 15. And then all the inquiries in the next 2 week period are combined, there is again ONE, on April 5. Well, that's how I think it works, and these days I'm not so sure about anything I've been told by Fair Isaac. Also, I just had a client who applied with 3 lenders. You can read about his 7 TU inquiries here
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| | Saturday, April 07, 2001 - 06:08 am Instead of applying at every shop in town, why not see of they will sign a contract similar to this one. If they are not willing to sign something like this, find another broker. There is also a similar contract on the HUD site http://www.hud.gov/fha/sfh/res/mbcontr2.html Though binding on the applicant it also prevents the broker from making a killing on yield spread as it limits excess compensation. --------- This agreement entered into on _________ between ____________ hereinafter referred to as Borrowers, and _______________________, hereinafter referred to as Broker. Exclusive Right to Represent: Borrower(s) hereby retain the services of Broker as their exclusive agent to secure financing in the amount of approximately $______ to facilitate the purchase, refinance or the construction of the property know as _______________, , or a property to be determined. Concurrently with this agreement, borrowers have submitted a loan application to Broker. Borrowers have not and will not apply to other lenders or through other brokers for a mortgage loan while this contract is in force. Borrowers Responsibilities and Duties: Borrower agrees to supply to Broker all necessary information and documentation such as pay stubs, W-2's, Bank statements or any other documents as required by Broker to complete the loan package and loan processing. Borrower also agrees to execute all documents necessary to complete this transaction in a timely manner. Broker's Duties and Responsibilities: Broker will obtain the borrowers' credit report, an appraisal, title report, and such other information as required by Lender to complete the transaction. Though Broker has access to many programs and products offered by various lenders, Broker does not distribute the products of every lender and thus cannot guarantee to borrower the absolute lowest price or best terms to borrower. However, Broker agrees to use diligence and their expertise in securing financing and obtain the best prices and terms that Broker is made aware of from it various relationships with lenders. Counseling and Education: Broker will use all of his skill, knowledge, and expertise in the mortgage business to help educate and counsel borrowers on the most suitable product for their financial needs. Agency Disclosure: Broker will act as Agent for Borrower and owes them such fiduciary allegiance as required. In addition, Broker will disclose loan terms to Borrower in accordance with all Federal and State laws. Compensation: Borrower acknowledges that Broker will not receive any compensation until the loan funds, However, Borrower acknowledges that such compensation is in consideration of Broker's advice, counsel, skill, knowledge, expertise, contacts and that compensation is deemed to have been earned upon loan approval as evidenced by a Loan Commitment or Final Approval from a lender. Source of Compensation: The lenders we work with will compensate us upon our instructions. If you choose a rate/fee combination in which the lender receives Discount Points, you will also be paying us a Loan Origination Fee, as we have agreed. If you choose to pay a higher rate, such as to get a zero-point loan, the lender will pay us the Loan Origination Fee. Finally, if you choose another combination, you will pay part of the Loan Origination Fee and the lender will pay the other part. No Hidden Cost: in return for the exclusive right to represent Borrower, Broker agrees to limit compensation to _____% of the loan amount or a flat fee of $_______ (whichever is greater)+ $300 processing fee for 1st mortgages or $195 processing fee for 2nd mortgages and equity lines of credit. Furthermore, any and all compensation by lender to broker will be fully and completely disclosed. Broker agrees that no "hidden compensation" will be received from lender or other source. If Broker shall receive any other compensation such as Rebates or Special Incentive's over and above the agreed compensation, Broker shall immediately credit or rebate same amount to Borrower Advance Deposits and Third Party Costs: Borrower acknowledges that if an Advance Deposit is required for the appraisal, credit report, or other items, said deposit is to be maintained in a Trust Account. Borrower hereby authorizes Broker to pay such fees out of Borrowers Trust funds. If the actual costs of these services are less than Borrowers deposit, the excess will be refunded to Borrowers after close of escrow. If a deposit is required. The deposit for the cost of the appraisal and/or credit report is: $________ If the appraiser is to be paid directly, the estimated cost is $_______. Double Applications - Borrower agrees not to apply for financing with another lender or if an application has been made, to withdraw the application immediately upon written credit approval by Lender. Borrower shall provide to AIM evidence that such application has been withdrawn. Cancellation: If this agreement is cancelled by Borrower(s) after their loan has been approved, Borrower(s) agree to pay Broker a Cancellation Fee of 1/2% of the loan approved loan amount as listed in this agreement. This provision shall not apply in the case of a purchase if the purchase is cancelled through no fault for the Borrower(s). Duration of Agreement: This agreement shall become effective as of the date executed by bother parties and shall continue until the transaction closes, which is anticipated to be _______________________. If Broker has not been able to obtain loan approval within 30 days of application, this agreement is voidable at the option of the Borrower(s) and any cancellation fee is hereby waived. Governing Law: This agreement shall be governed by the laws of the State of _____. __________________________ Borrower __________________________ Borrower __________________________ Broker
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| | Saturday, April 07, 2001 - 02:48 pm The only thing missing is a rate quote. Because there are so many wholesalers and "specialty" programs, a borrower should be able to get quotes for their intended loan prior to signing up with a broker.
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