Inconsistencies across Mortgage lender processes for pre-approvals

[Mayank Jain]

Hi everyone,

I'm a new home buyer from Bay Area and trying to get pre-approvals in place before I start making offers. I have strong financials and will be doing a >50% down payment for a Condo. DTI < 33%

Some inconsistencies that I am discovering in the process
- Some lenders requiring a hard-credit pull vs some ok pre-approving me with just a soft pull
- Some lenders willing to share a loan estimate sheet with exact costs to close, vs some keep insisting that they "need to run the process to get the loan estimate" and that it can only be done after I get into contract.

Just before going into a contract, I would like compare all of the pre-approvals and compare their rates, exact cost to close & potential time to close & then pick the best one to make the offer.

Ideal scenario
- Pre-approve based on a soft pull (so I don't get my credit score dinged every time I work with a new lender)
- Share loan estimate sheet with pre-approval for a potential property

Am I asking too much from the lenders?

Thanks

[Erik Estrada]

Quote from @Mayank Jain:

Hi everyone,

I'm a new home buyer from Bay Area and trying to get pre-approvals in place before I start making offers. I have strong financials and will be doing a >50% down payment for a Condo. DTI < 33%

Some inconsistencies that I am discovering in the process
- Some lenders requiring a hard-credit pull vs some ok pre-approving me with just a soft pull
- Some lenders willing to share a loan estimate sheet with exact costs to close, vs some keep insisting that they "need to run the process to get the loan estimate" and that it can only be done after I get into contract.

Just before going into a contract, I would like compare all of the pre-approvals and compare their rates, exact cost to close & potential time to close & then pick the best one to make the offer.

Ideal scenario
- Pre-approve based on a soft pull (so I don't get my credit score dinged every time I work with a new lender)
- Share loan estimate sheet with pre-approval for a potential property

Am I asking too much from the lenders?

Thanks

 Hey Mayank, 

I think it's best just to ask for a soft quote based on verbal information. Also it would be fair for you to disclose upfront that you are shopping around for the best rate and fees. 

But honestly, have you just tried going to your local bank to see what they offer you? Usually if you have several accounts and investments with 1 bank they will provide you with low to no lender fees and the better rate.

The main issue here is that there is a lot of time/effort spent looking at your financials and documents to make sure there are no discrepancies, qualifying you, and sending Pre-Approval Letters, for you to just go with another lender that is offering you the better rate/fees. That time could have been spent working with a committed client that is not only looking for the best terms, but is also looking to establish a long term lending partnership. You might be able to get away with shopping and nickel and diming for a few loans, but once you start to scale, you will see how valuable having a lending partnership with someone that is well-versed in all mortgage products is. 

At the end of the day, most loan officers are in the business to close loans. Asking for an LE, Full Pre- Approval and multiple estimates, just to not work with them is a waste of time. No offense to you, but that's just the reality.