How can I shop around for a mortgage when every lender won't process without ordering an appraisal?

Pasadenan
Contributions:26324

"If they won't give you a GFE, go elsewhere" -

If they offer to give you a GFE and they haven't done an appraisal nor a credit check, go elsewhere! The GFE is legally binding now! They cannot give you an accurate GFE if they don't have the information, and they can't get the information without some expense!

If someone IS giving you a GFE and hasn't obtained the required information, they are either:
1) breaking the law
2) giving a really high GFE
3) are not giving you a GFE, but just an estimate of costs, which is what you are supposed to get with a quote on Zillow!

Zillow has an error on their quote forms, asking you to ask for the GFE. If the quote had any validity, the numbers are already given! And you should not be able to get a GFE without a loan application, credit check, and appraisal.

Maybe they are paying for the appraisal out of pocket? Then you would be paying for other people's appraisals out of your pocket if you fund with them.

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February 05 2010

Brian G. Allen
- (10 reviews)
Contributions:334

Gov't has a way of screwing things up sorry for your frustration take the stress out of it by asking each lender a few questions. A GFE is nothing more than:
points you wish to pay,
lender fees- (Processing, Underwriting any others)
This will give you an idea and it shouldn't cost you to obtain
basic charges.

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February 05 2010

Justin Kennedy
- Write a review
Contributions:692

first time, input your information into zillow and request some qoutes. you are making the process way to difficult. also, work with someone who you trust he/she may not be the lowest cost but when a problem arises you will want an expert with clear communcation and provide you with customer service.
check the others post on zillow you have many people requesting help for this and that after thier loan closed at discount big bank. my first question is always were is the guy/gal who just made a commisson on that closing.
as Clark Howard says customer NO service.

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February 04 2010

Brennan Hubbert, "PCS Mortgage"
- (3 reviews)
Contributions:2

Keep shopping. You'll find a lender that is willing to work with you based on needs/wants. If they won't give you a GFE, go elsewhere. Don't give anyone your credit card number until you receive all state disclosures, applcation and a lock commitment.

Best of luck!

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February 03 2010

SoCal_Engr
Contributions:6698

Echoing Pasadenan...

You don't need a GFE to "shop" lenders. Lenders should be able to give you info on their fees and general costs without getting to "GFEs" and "appraisals". Those are for when you've locked into a lender and are ready to move forward with an actual loan application.

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February 03 2010

Pasadenan
Contributions:26324

What do you need a GFE for if you haven't given sufficient information to get accurate numbers for the GFE? The lender needs an accurate Loan to Value ratio to give a completely accurate quote. They can't get that without an appraisal, nor without knowing your actual credit scores, and actual income and debt to income ratio.

You don't need the GFE to "shop" for loans. You only need an accurate breakdown of fees for the given assumptions, and an accurate interest rate quote for the given assumptions.

If they don't include all the fees, or have other misleading information on their quote, go elsewhere. If they can't be trusted to even give you a detailed quote, you don't want to do business with them.

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February 03 2010

Greg Darlin, "Greg Darlin"
- (93 reviews)
Contributions:3238

A lender can give you a Closing Cost Estimate based on the the information you give them. They don't have to pull credit. However, the Closing Cost Estimate is not binding and only as good as what you tell the lender: income, credit scores, property value, county and state you live in and the amount of your loan.

If you want a Pre-Approval letter, assuming you are buying a home, the lender will need a credit report (which is the only fee he/she can collect at that time), W2's, pay-stubs, asset statements and your will need to be run through automated underwriting.

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February 03 2010

George Belleville, "George Belleville"
- (5 reviews)
Contributions:240

There are plenty of lenders who will give you a prequalification before you give them any money. I work with one all the time. You don't need an appraisal until you have a contract on a house. Contact me via my profile and I can give you the name of a lender who will do this for you.

I assume from your screen name that you know you need to be under contract by the end of April to qualify for the tax incentive?

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February 03 2010

Andrew Adams, "RenovationSpecialist"
- (4 reviews)
Contributions:9406

This is the catch-22 that many lenders on here have been complaining about a real GFE binds the lender to the fees quoted and unfortunately without an application....many lenders will be hesitent to provide an official GFE, but you shoudl be able to get an accurate break down of fees from any lender you talk with if you can't run!

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February 03 2010

Patrick Nolan, "Bucks County Banker"
- (102 reviews)
Contributions:282

Shop around with some different lenders. There are a lot of us who will give you a complete quote with a break down of costs and a sample GFE based on the information you supply.

I send Zillow borrowers complete applications to sign and have locked the rate without obtaining any funds from them. They have to pay the appraisal management company at the time the appraisal is scheduled, but you could shop around to your hearts content without spending a dime from lots of us on Zillow.

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February 03 2010

Kelly Lacey, "kellylacey"
- (39 reviews)
Contributions:797

They can't supply you with an official GFE but they can disclose the fees. To receive the GFE you they would need to access your credit and attain certain pieces of info. You do not give the deposit until you choose to move forward. If a lender is saying they need it at time of application, then walk.