Whether you’re after a mortgage loan to purchase a new home or want to refinance your current one, you should always get multiple quotes and compare them. Always do some shopping around with these kinds of quotes, prices, and offers, just as you would with any other type of loan. Don’t think that there won’t be much of a price difference when you get mortgage quotes from various lenders and companies, but it really can.
You need to make sure you are an excellent candidate to get multiple quotes at once. Sometimes the quotes you get are just part of a “pre-approval” process. You’ll have to go through more steps to determine if you are a good candidate for any lenders listed in the quotes. If you are, you can fill out the application officially.
If you are in good financial standing and have decent credit, you shouldn’t have too much to worry about. However, if you want to refinance and your credit score is low, and you are experiencing financial difficulties, think long and hard about your options. Depending on your specific situation, age, plans for the future, etc., you might be better off where you are right now, as refinancing could make everything worse.
Get Mortgage Quotes from Several Providers
Regardless of your plans, experts usually recommend getting mortgage quotes from 3 – 5 companies. You might get dozens of quotes, but narrowing them down to 3 – 5 is ideal. You will, of course, want to run a quick background check and read reviews on the lenders you are considering. Don’t just look at the rates and fees. Go over the terms and conditions, repayment terms, and how the rates will affect you not only in the short term but also in the long term. Will the introduction interest rate go up? If so, when? And how much?
For the actual approval process, you will need to get all of your financial documents prepared. Any legitimate lender will want to see documentation about your income, credit score, assets, etc. In addition, you might need to provide info such as recent pay stubs and bank statements, depending on where you are applying.
Do you think you can get pre-approved? What are your chances? The only way to know is to get mortgage quotes from LoanDepot and see what you might qualify for. Get several quotes at once for mortgages, refinance loans, and any other type of loan.