In doing a 30 year fixed rate mortgage, what is the better option. A bank or credit union or a broker?
Posted by admin | Under Fixed Rate Mortgage Thursday Oct 23, 2008I have been researching mortgages for months and no one gives me a straight answer and even if it seems that they do. The next person I talk with has a conflicting answer. It seems that Brokers charge more closing costs but banks don't seem to have as much information on the market and they seem more difficult to work with.
The way to determine this is to get a Good Faith Estimate from all three, compare them and see which entity is offering you the BEST deal. ( Best deal = lowest interest rate, lease amount of out of pocket expenses)
E-loan
References :
I just refinanced my condo through Quicken Loans. They got me a great rate after shopping around for awhile. Although you'll be SWAMPED with offers, try LendingTree.com. That's where I started my search and eventually found a program that was right for me (30-year fixed rate below 6% with super low closing costs and a waived appraisal)
References :
http://www.lendingtree.com, http://www.quickenloans.com
The way to determine this is to get a Good Faith Estimate from all three, compare them and see which entity is offering you the BEST deal. ( Best deal = lowest interest rate, lease amount of out of pocket expenses)
References :
experience
I recently bought a home and got financing through Bank of America. First, I completed an on-line questionnaire that gave me a rough prequalification amount and monthly estimated payments. Then I contacted the Mortgage number listed in the paperwork. I provided the Mortgage Specialist with my information, and faxed my supporting documentation (W-2s, letter of intent, etc.) to her. I heard back within 1 week, when I received a Good Faith Estimate in the mail. I immediately called and got information on what everything meant from another Specialist. I also created an on-line account that allowed me to see every step of the process, and where I was in it. From that point on, I worked with my realtor and found a home. When we wrote up my contract, a copy of the Good Faith Estimate letter was included (we blacked out my monthly payment estimate). This showed that I was a serious prequalified buyer. When my offer was accepted, everything moved quickly. Bank of America provided a specific Mortgage Specialist from their Richmond, VA office (I do not live there). I worked with her exclusively, and was able to log into my account and view everything's status. My closing was on time, and I received all of my earnest money deposit back because the seller paid my closing costs. I even got back my application fee of $200. Each Mortgage Specialist that I worked with (the entire process took about 3 months) was professional, patient, and effecient. I would recommend Bank of America to anyone. Afterwards I was able to set up automatic mortgage payments, that I can cancel or change at any time. Also, I can go on-line and pay, as long as the payment is received before the 15th of each month. The fact that I never sat face-to-face with anyone did not hinder the process at all. I later found out that Bank of America has a close on time guarentee.
References :
http://www.bankofamerica.com
Recent 1st Time Home Buyer
If you have AAA credit and income price out and go with a LOCAL BANK, if not then price out and go with a LOCAL BROKER. STAY AWAY FROM THE ONES THAT ARE NOT LOCAL TO YOU.
A lot people giving advice are also looking to give you a loan (its not advise, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL, STAY SAFE.
Remember Buddha's advice:
"Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (its not advise, its advertising). Don't buy "it."
References :