Trying to get preapproved for a loan -- am I getting ripped off?

 Hi,

I'm trying to get pre-approved for a loan so I can buy a condo.  The
real estate I was referred to referred me to a mortgage broker, who
told me to bring some work history, tax forms, some other stuff and a
$450 application fee.  This got me thinking about how would you find
the cheapest way to get the best loan?  I have heard of services like
Lending Tree and DiTech but I'm really not sure how those work and
would value some opinions about the what steps you would take.

Thanks, - Dave

  On 30/01/2011 18:09, laredotornado wrote:

Don't pay _any_ fees to lenders, unless they state in writing that the
fee is payable only on approval.

If you cannot get a bank loan, then maybe your finances are not up to
taking on a mortgage?

 
True on both points.

Many, maybe most, states are now licensing/registering mortgage
lenders these days.  If yours does, check with the Secretary of States
office to make sure this lender is in order.  If not, STAY AWAY.

 g wrote:


Further, make sure the broker puts ALL his promises in writing, and
specifies the entire fee is refundable if the loan is not approved
within ALL the promised parameters.

 Pre-approved means nothing - it's advertising - it's the same as those old
CC solicitations that used to go out in the mail - "You're Pre-Approved
!!" - and ya still had to go the entire approval process like anyone else.