Mortgage Lending Questions for Newbie!?
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I'm currently applying for a mortgage via my mortgage consultant/broker.
First question~
Should I shop around via different brokers to get various comparisons or will my various loan camparisons come from one broker?
2nd Question~
At what point should I recieve my Good Faith Estimate? Some people say 3 days after the loan application is submitted and others say once you find the property!
Isn't it too late to bargain and shop around once the property is found???
3rd Questions
Yield spread premium...should I be leary or is this everyday practice in the mortgage lending world?
I don't have a full understanding of this!
WOW! I feel really overwhelmed right now!
Credit rating is approx. 620
Thanks
Mortgage Lending Questions for Newbie!?First Question:
Yes you should shop around to different brokers because generally each broker has a set number of lenders with which they deal.
2nd Question:
RESPA requires that a Good Faith Estimate be provided no later than 3 business days after completed application. You can always shop around for different properties until you sign the "agreement of sale" contract with your realtor. This agreement is legally binding and says you must buy the house, unless certain things happen that prevent you (i.e. you are unable to obtain financing).
3rd Question:
Yield spread premiums are junk fees usually done by brokers. If you deal directly with the lender (i.e. a bank), then you probably would not have these fees. However, with your 620 credit score, you are probably better off going through a broker, unless you know of banks that make subprime loans around you.
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