Credit Apps with Multiple Lenders

[Madeline]

I've been told that every time somebody pulls your credit records, your credit rating goes down a point or two (which makes no sense at all to me). In attempting to get the best rate possible, how can I apply with several lenders and avoid having my credit score go down? Or do I just look at the rates, then pick one or two lenders and assume that with my excellent credit that I'll get the best rate offered? (I hope that question is clear)

[Toby Hise]

If you have excellent credit, do not shop the paper. Do your homework with the lenders. Find out the programs thay offer, and then choose the one that will work for you. Shotgunning your applications will lower your score, which can effect the interest rate.

[rmurray]

The company that generates your FICO score has taken a lot of critisism about this in the case of mortgages and auto purchases...

The system was changed in the last year or so to reflect reality and the comsumer's right to shop..

For automobiles....all auto loan inquires posted with in 1 week are considered only 1 inquiry for score purposes...

For mortgages...all mortgage inquiries posted with in 30 days are considered only 1 inquiry for score purposes..

One word of warning....most manufactured home dealers are NOT listed as mortgage lenders...their inquiries do affect scores..

The Fair Isaac Company does maintain a web site to fully explain the scoring system to the general consumer...Of course...they offer your score for a price...but the free info can be very helpful...Check it out..

http://www.myfico.com/myfico/Home.asp

[Madeline]

When you say, "do your homework with the lenders" what do you mean? And when you say not to "shop the paper" - why not? The Sunday edition lists about 30 mortgage lenders and their rates. I thought I'd just pick out the lowest rates and then call the lender to confirm - then apply. Isn't it that simple or am I missing something?

[Madeline]

Isn't there someplace on the web that allows you to submit ONE generic application and then let the lenders compete for your business? If not, there OUGHT to be!

Thanks for your input.

[rmurray]

Right here at this web site you can find this service....

[rmurray]

Mortgage ads are just like many other businesses...Many of the big rate ads have a lot of small print..

Example we are all aware of...Diteck.com...TV ads about every half hour...Impossibly low rates and a large paragraph of unreadable discolosures..Well the first one is for plus 300K loans...

Personally I think it does pay to shop lenders..Unfortuanately the very low rate lenders can only tell you what the rate is today...not when you close...Most cannot or will not lock in at the best rate for more than 14 days..For those that might be somewhat shaddy...it gives them a chance to bump you later...It does happen..

Stick to the major mortgage companies...Remember the loan originator is a commission sales person...No close...no pay...but higher check if they get higher closing costs or higher rate..At least this is not just for the manufactured home business..

[Toby Hise]

You are going for the lowest interest rate from thirty lenders. Are the interest rates with or without points? What is the lenders down payment requirements for the interest rates advertised? Are the rates based on 80, 90, or 95% LTV? Are the interest rates fixed or adjustable. Do they offer construction loans or end loans only? Do they loan on manufactured housing? Do they offer only Conventional, or do they offer FHA loans? What are there closing cost? Do they have applications fees?
Are the mortgates companies actual lenders or mortage brokers? If they are brokers, how much will they charge you in broker fees for the loan amount you will need. This is some of the homework?

[Toby Hise]

Now if I could only spell. LOL