Chicago

[illus]

Hey there. My wife and I are first time home buyers. I recently was put in touch with a lender. He had me go to his website and fill out an application. I have to admit that I don't know what I'm doing here. I filled out all our info. I thought this was so he could advise us. But then I got a credit report back and then a button that said "Submit Application". How is this process normall supposed to work? What are the steps for finding a good lender/ rate?

[MarkusAIC]

Sounds like you've ended up dealing with a broker rather than an actual lender. I would tread carefully just in case. There are a lot of good mortgage brokers and then there are some that seem to play creative games with paperwork.

There are a number of ways to find a lender:

- call the ones that advertise; some good, some not so good; often not so good for newbies who don't understand the process and what fees are normal and which fees are 'unnecessary'

- go to one of the big banks; can be a big hassle and waste of time unless your paperwork is just right

- ask friends who they used and if they are happy; one of the better ways to avoid issues

- internet research; can be good or bad

- You can try Crown Mortgage on 95th St. in Oak Lawn; I have no personal affiliation with them. However, I know people who have gotten mortgages from them and been happy with the process. As with most of these guys their points vary based on what you negotiate. They are local so dealing with them seems to be easier as well from what I've been told.

Good luck.

[Erik_Johansson]

illus,

The information you submitted to the lender via their website was the first step in this case. Essentially you have saved yourself the time it would have taken to do the data entry over the phone. You should submit the application and then call the lender or more than likely the lender will call you when the application pops up. Once the lender has the basic information to reflect your income, assets, and credit they will be more well prepared to walk you through the process.

When you speak with the lender he/she will get a broader sense of what you are trying to accomplish and help you more more clearly understand the process and what you will qualify for. This is the more substantive part of the pre-approval. Once you have a clearer picture you will still have the ability to call around and check rates and fees before ultimately deciding on a lender.

Pre-approvals should be done at no cost and there is no obligation.

I hope this helps.