vanz Posted June 1, 2007 Share Posted June 1, 2007 The majority here are probably homeowners, so I'll ask for your advise. This stuff is giving me a headache. We are looking to close on our townhouse. It's still being built and is projected to close on the 19 of July (Aug 8 latest). I am confused on the lender part. Our realtor wants us to choose a lender ASAP, but the closing is over 1-2 months away. She wants to fill in all the paperwork with the lender, (maybe escrow purposes?) but we are undecided on who to go with. Interest rates haven't been steady so we are unsure who will give the better rate when the time comes to lock it in. We want to lock in the rate around the 24th-26th of this month, gives us a cushion in case the closing date gets pushed back. What would you guys do? Would you choose one lender and go with them well before lock-in? I'm really new to all of this, so any tips would be realy helpful. Am I making sense? Quote Link to comment Share on other sites More sharing options...
180Brandy Posted June 1, 2007 Share Posted June 1, 2007 Don't let the realtor pressure you into anything. Also do you belong to a credit union? What are your banks rates? I would make sure you get a fixed rate on your loan. Before you sign your life away make sure there are no hidden costs,surprises. Ask what can you do for me. Pick out several lenders. Find out which one can give you the best deal. From what you have said it sounds to me that they want you to hurry up and close the deal so they can then add those lovely up charges on unexpected expenses DOH! Quote Link to comment Share on other sites More sharing options...
Theron Posted June 1, 2007 Share Posted June 1, 2007 I think it is a good idea to get the process started with a lender. Get the credit report done and good faith estimates to avoid any suprises at the last minute before closing. You can change lenders later, but might loose some fees that you have already payed. Also, I think it is a good idea to have several lenders on hand. Our last house purchase (9 months ago) I had pre-approved with 3 lenders. I negociated with all of them to get the best rate. We locked in our rate, then a week before closing the rates lowered some. We were able to get the lender to adjust our locked rate to match one of the other lenders. Worked out well. Theron Quote Link to comment Share on other sites More sharing options...
Nyles Posted June 1, 2007 Share Posted June 1, 2007 If it was me I would talk to a mortgage broker, especially if your a first time buyer, you qualify for a lot of nice perks, like no money down. On a side note I was able to qualify for a first time home buyer with no money down and no mortgage insurance, I was also able to put money down and take 10,000 out of my IRA and put that down on my house as well, it made a big difference in the payment, plus qualified me for a better interest rate. Just don't get pressured into something you can't afford, if your a first time buyer make them find a good deal, don't settle for a 80/20, thats the lazy mortgage brokers answer, unless your credit is on the not so perfect side (under 700 rating) Quote Link to comment Share on other sites More sharing options...
vanz Posted June 1, 2007 Author Share Posted June 1, 2007 Thanks for all the input! We are definitely doing a 30 yr fixed. 20%+ down. Credit score is high 700. We have one lender saying they'll pay the closing cost...which I assume is not the entire "closing cost" but just the lender's closing cost. I just want to know the NET amount that we'll have to pay. That's why we are shopping. I guess we'll just have to wait and see what their good faith estimates are. I have talked to a couple of mortgage broker...one was kinda loopy...and the other is friends/works out of the same office of the realtor that we dumped a while ago...so i'm not sure what kind of deals we can get from her now. Quote Link to comment Share on other sites More sharing options...
Lowman Posted June 1, 2007 Share Posted June 1, 2007 It seemed to me when I bought my house, which was my first, that the realtors, mortgage brokers, and the lenders were all sharks, worse than any car salesman (no offense) I've ever seen. Just call around, get some good advice, and make an educated choice. Ask every question you can think of, then think of some more. This is probably the biggest purchase of your life, and a bad deal can ruin your excellent credit very quickly. Quote Link to comment Share on other sites More sharing options...
Nyles Posted June 1, 2007 Share Posted June 1, 2007 Vanz you should ask some friends close to you what there experiences have been, my wife is getting into the business and barleychown on here is an agent to, there is plenty of good people in the business, but its best to ask around, I used to live in beaverton but I did not make any purchases there. The big thing here is these people are paid to work for you, if you don't feel your being helped go somewhere else, its there job to explain the process and make you understand and feel comfortable with what you are doing (especially your mort broker). If your doing 20% down I would also consider your local credit union, there rates are good and your keeping your money close to home (selco and first tech are great banks) but you need at least 10% down with them. G/L Quote Link to comment Share on other sites More sharing options...
vanz Posted June 1, 2007 Author Share Posted June 1, 2007 Thanks a lot guys. I went on to the credit union's website and looked for quotes there, seems pretty decent. I like the way the credit unions make it so easy to check rates and they break down all of the fees. I even checked with Paramount Equity - "We will match or beat any written rate and fee structure" Quote Link to comment Share on other sites More sharing options...
Twitterbait Posted June 2, 2007 Share Posted June 2, 2007 I work for B of A mortgage... no longer in loans anymore though. I also have a good friend that is a broker. some good advice... shop around, get at least 3-4 quotes at least, even better if you can get a quote without letting them pull your credit. DO NOT USE THE RATE TO SHOP!!! always go by the APR not the rate. the apr includes the costs associated with the loan and will give you a true picture of who is going to give you the right deal. use caution with brokers, they are only in it for a moment until they can sell you off and get rid of you. larger banks have more buying power and if a large bank messes upthey will cover their own mistakes, brokers usually don't. drop me a line if you need any specific advice. I ain't gonna make any money off of you so i can tell you straight Quote Link to comment Share on other sites More sharing options...
H20cooled Posted June 2, 2007 Share Posted June 2, 2007 I've used 3 other ones in the past including Paramount Equity and have been extremely disappointed with the complete lack of service. I'm in the process of selling my house, I asked around work for referrals for good brokers and called 2 different ones and the one that I'm using now has so far he has been great. If you would like his contact info PM me. Rich Quote Link to comment Share on other sites More sharing options...
CCR Posted June 3, 2007 Share Posted June 3, 2007 I am A branch manager. bellafundinggroup.com Between real estate and mortgages I've been doing it for 30 years. With 20% down. You don't need a first time buyer program. You won't have Mortgage Insurance. You will need to put info together for the normal application. BE CAREFUL. Thanks to the Feds. The Good Faith Estimate is flawed. There is a loop hole in them. Easier put, what most think their getting and what comes down at closing are not usually the same I'm sad to say. It's called bait and switch and don't kid your self. Happens way to much. When on the Realtor side. I got sick and tires of the BS lenders did, couldn't get answers etc. Hell couldn't get a call back. So just my nature to fight the system. If you straight answers. I would be glad to help. Even if your not using me. Oh yea so when the lender says no closing costs RUN B of A sent her (my client)a paper that got her very excited about a $200,000. loan with no closing costs. In ten seconds it was rather easy to show her in hard numbers that over the live of the new loan it was over $32,000. she would pay for that Free Loan( no closing costs) And thats still a lie. You still have to come up with Home owners Insurance and tax reserves. There is nothing free. Ask. Quote Link to comment Share on other sites More sharing options...
Twitterbait Posted June 3, 2007 Share Posted June 3, 2007 perhaps... but not many banks will pay all the 3rd party fees too. you should always expect to pay Insurance, taxes, and prepaids. B of A no fee program waives MI though... shop around, as much as you can. I can also give you the info of my mortgage broker friend too. Quote Link to comment Share on other sites More sharing options...
superjohnny Posted June 3, 2007 Share Posted June 3, 2007 Hey Vanz, My wife has a good friend who is a broker. He's an honest guy. Shoot me a PM if you want his name & number. He doesn't pull any tricks and will help you get the best deal possible. The key is to find someone you can trust and that's not always an easy task. By shopping around you're on the right track though... Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.