A home buyer told me recently that another lender refused to give her a rate quote unless she submitted a full application and allowed them to pull her credit. This is wrong — and it’s important that buyers know it.

A lender does not need a complete application or a credit pull — not even a soft pull — to provide you with a detailed mortgage rate quote. If a lender requires this before showing you numbers, they are either operating under a restrictive company policy or trying to capture your information before you’ve decided to work with them. Neither is in your interest as a buyer.

Here’s exactly what a lender actually needs to give you an accurate, itemized rate quote — and what you should expect to receive.

While it’s ideal for a lender to have this information so they can provide a more accurate scenario, it should not be required. If a person is in the early stages of shopping interest rates and lenders, they should be able to obtain a quote that shows current interest rate with the APR, itemized closing costs, estimated monthly payment and the estimated funds needed for closing (down payment and closing costs). [Read more…]