so anyway, how exactly does one "shop around for a house loan?" or, if we get a FHA loan, does it not matter, because they have a standard rate everywhere?

also, would it be cool to get the pre-approval loan papers from one bank and then the actual loan from another bank? or is that frowned upon?

we are buying our first house soon, any and all related help is appreciated!

congrats bort!

Bort - most people probably would advise against this, but I went to a mortgage broker that I could absolutely trust (he's one of my best friend's dads) and he walked us through the whole process. There are a lot of "tricks" still available to get the best loan at the best rate for what you are looking for. - and he knew how to work the system. Needless to say, I don't have an ARM, and my house isn't 6000 Sq Ft I can't afford now.

is a mortgage broker different than say, the guy that works in the mortgage branch of the bank? we met with this guy that is trusted/recommended (by mother-in-law and 2 uncles) and he walked us through in layman's terms about loans and our options and so forth.

does one just ask for a quote/"deal" and then say "thanks, i'll get back to you (after i check out this bank down the street)."?

me too!...I've got my closing next week Friday. I got a pretty good deal, I bought it for a considerable amount less than the asking price and got a decent rate considering my mediocre credit score. Looking forward to that $8,000 tax credit, I'm not exactly certain how that all works out yet, though.

yes.

Yes a broker costs $$$ but does all the work of finding the best loan for you... you sit back and wait.

They are not cheap... if you have the time and knowledge, do it yourself.

http://www.mtgprofessor.com/

Spend a little time looking over this site. I think it's pretty good.

broker is always worth it. unless you have a financial advisor who knows his shit. but just you out there against the market? sounds like how we got to where we're at.

Use this site to judge the current market with what is being offered to you. You will almost always be about half a point higher.

http://www.bankrate.com

Don't get an ARM.
I have used lending tree before, but you are flooded with calls and emails from sales people even after you choose a lender. They just keep calling like they are the first one to get to you weeks later.

ok so we are moving on

we've been pre-approved. we made and offer and it was accepted.

now i just need to choose a bank.

we are definitely getting an FHA loan, and the banker i talked to yesterday quoted me a 5.25% rate and around $3,000 in bank-related closing costs.

can i just go to another bank and see if they can "compete" - and if so, what other things are flexible/negotiable when getting a loan.

My bank gave me a .25% reduction if I set up a checking account with them and did the automatic withdrawl for one year.

Closing costs and the rate are negotiable. You can also buy points to reduce your rate, which may or may not be cheaper for you.

Good job on getting one more home off the market. Recovery, here we come.

stuff like that is good to know!

Check Bankrate.com. I don't know the particulars of your loan (yrs, points, fixed/variable, etc.) or your credit score, but you might be able to beat 5.25%.

You should compute the break even point to determine whether it makes more sense to buy points to reduce your rate. If you plan on staying in the house for at least 5-7 years, it may be worth it to buy points.

(5-7 years is a ballpark - figure it out with your parameters. It might even be less than that.)

yeah we will definitely stay there for more than 5-7 years.