Question about getting the best mortgage rate....

How do I go about getting a mortgage.....I know this probably sounds like a dumb question but DH and I are totally clueless. Last time we went with a broker who did everything for us but now we were told that we shouldn't use a broker because we have good credit and can get a better rate going directly to a bank.....so do I call around to different banks....do I go and sit down with different people....does every bank run your credit...wouldn't that lower your credit score? Sorry for all the questions but as I said before I am clueless.....TIA

Re: Question about getting the best mortgage rate....

You contact different banks directly, and they can give you a rate estimate, though the actual rate you receive may be higher or lower depending upon when you lock, the amount your are borrowing, your credit, etc. Honestly, most banks offered very similar rates when we were calling around. The difference often seemed to lie within the fees they charge for closing. The banks will give you a ballpark figure for this when you call, though the actual closing figure may be different.

Look into credit unions too--sometimes they offer pretty good deals.

DH bought a book called Mortgages 101, and this was really helpful for both of us.

Re: Question about getting the best mortgage rate....

Oh, I forgot. One person told us to try and call banks roughly around the same time on the same day so the rate comparisons you have are accurate. The rates change daily, so if you spread this out too much, you won't really know who is offering the best deal.

And ask what their APR (annual percentage rate) is. This incorporates addtl. fees and gives you a better picture of what you are getting for your money.

Re: Question about getting the best mortgage rate....

I just went to my bank (Chase) and they did all the work. It was a very easy process.

Re: Question about getting the best mortgage rate....

When they run your credit to get a mortgage, it doesn't lower your credit score (they realize why it's getting done so frequently in a short time span).

DH both have good credit and we went with a broker (friend of DHs). He was great to work with and he got us a great rate! We were told the same thing by some people, if you have good credit, you don't need to use a broker. The thing I liked though was that we were locked in earlier this year at 6.0% and after that, he was able to lock us in with another bank at 5.875%.

Re: Question about getting the best mortgage rate....

You can contact the bank where you do your current banking, use a broker to do the searching for best rates for you, or go with a credit union. I used the Nassau Educators Credit Union and got a great rate.