Answers

Once pre-approved, what is the best way to shop for a better mortgage rate?

Get on the phone and get good faith estimates. It will take a while to give them all the info but may be well worth it. Get at least 5 if you really want to be sure you have a good deal. You might also try a mortgage broker, they can take your info and hook you up with the best lender they have access to for your particulars. The problem with strictly trying for a lower rate is that someone can give you higher fees and a lower rate no problem. If you are not financially savvy and just love crunching numbers into the wee hours of the morning with your spreadsheet program then just compare the APR of each offer. This is actual percentage rate which takes the fees into account. The same lender can give you multiple options if you have a particular need such as fewer up front costs. They can raise the rate to lower the fees in the for of points. Then you can compare apples to apples between lenders and see who really has the best offer.

Best Answer:

Answers:

g_danadwyer - 2006-02-22 10:24:02
The best way is to pick up the phone, and call various mortgage lenders. The important part is giving consistent information to all of the lenders, and getting back standardized information so you can compare apples to apples. Once you get a quote you are satisfied with, ask them to lock, and to send you a GFE (good faith estimate). This way, you will see if there are any hidden fees or points that were not disclosed during the phone conversation. The comparisson should be done on the same day, as rates change daily. Information you should be proving includes purchase price, size of loan, and # of days to closing. Information you should recieve back is rate, and ALL closing costs, not just the lenders. Many lenders neglect to give you all of the closing costs, which are primarily outside 3rd party costs such as appraisals, closing attorney fees, title insurance, recording, etc.