SIGforum.com    Main Page  Hop To Forum Categories  The Lounge    House buying/Mortgage questions
Go
New
Find
Notify
Tools
Reply
  
House buying/Mortgage questions Login/Join 
Member
posted
I have successfully gotten a contract on a house to be built. Will be finished late July or early August. My realtor referred me to his mortgage guy. Process is going fine but someone said it wouldn't hurt to see other options. I have started the process with Rocket Mortgage/Quicken.

Much easier to deal with. She's telling me rates are around 4.25 right now and she has convinced me to go Conventional rather than FHA because I've got pretty good credit and it's not that much more of a down payment...5% vs 3.5% with the FHA.

The other mortgage guy is telling me the rate will be near 5% with the FHA loan and is just harder to deal with/get a hold off. He's someone local.

Am I wrong to try and find the best deal? It seems like Rocket Mortgage may be the way to go. My realtor called saying the listing agent got a request for the contract.

Any other advice would be appreciated. I did offer $5000 more to have the builder pay that amount towards closing also.
 
Posts: 258 | Location: Murfreesboro, TN | Registered: February 22, 2011Reply With QuoteReport This Post
Member
posted Hide Post
I would tell the local guy that it is a competitive situation and that he should prepare any proposals accordiugly. I imagine his new proposals to you will show how hard he was going to screw you originally..

I would also consult 2-3 other banks - also telling them that it is a competitive situation.

Bankrate.com will also give you a good idea ballpark range of rates for the different loan products.
 
Posts: 2169 | Registered: April 14, 2009Reply With QuoteReport This Post
Member
Picture of Oldrider
posted Hide Post
You have my sympathy as well as my hope about dealing with financial institutions.
I've looked several times in the last 5 years at re-financing my home. I have been lied to, put off, had my credit score repeatedly hammered, bait 'n switched, and treated like dog poo. I have had an "appraiser" belittle me about housekeeping (I was single and working full time + part time).

I hate banks period.

But I wish you well. You might want to retain a lawyer to cover your butt.


___________________________________________________________
Your right to swing your fist stops just short of the other person's nose...
 
Posts: 360 | Location: Outinthesticks | Registered: October 08, 2016Reply With QuoteReport This Post
Member
posted Hide Post
I wouldn't even consider financing a house without a least three and preferably five or six mortgage offers. Fee's, terms, lockin rules, a zillion things that matter are all on the table. If you have credit/earnings to get a mortgage then you will benefit from shopping.


“So in war, the way is to avoid what is strong, and strike at what is weak.”
 
Posts: 10966 | Registered: October 14, 2004Reply With QuoteReport This Post
Shit don't
mean shit
posted Hide Post
I've had a few mortgages through U.S Bank. They service their loans for the entire term, if that matters to you. I use the web page below to shop rates. That page says rates are 4.5% as of today. If you can get a 4.25% I'd say that is a good deal.

https://www.usbank.com/home-lo.../mortgage-rates.html
 
Posts: 5733 | Location: 7400 feet in Conifer CO | Registered: November 14, 2006Reply With QuoteReport This Post
Member
posted Hide Post
That's what has pissed me off with the local guy. His rates are ridiculous compared to what I've seen on the open market and what Rocket Mortgage is quoting.

quote:
Originally posted by Oldrider:
You have my sympathy as well as my hope about dealing with financial institutions.
I've looked several times in the last 5 years at re-financing my home. I have been lied to, put off, had my credit score repeatedly hammered, bait 'n switched, and treated like dog poo. I have had an "appraiser" belittle me about housekeeping (I was single and working full time + part time).

I hate banks period.

But I wish you well. You might want to retain a lawyer to cover your butt.
 
Posts: 258 | Location: Murfreesboro, TN | Registered: February 22, 2011Reply With QuoteReport This Post
Victim of Life's
Circumstances
Picture of doublesharp
posted Hide Post
You are probably aware but watch out for add on fees to be padded.


________________________
God spelled backwards is dog
 
Posts: 4682 | Location: Sunnyside of Louisville | Registered: July 04, 2007Reply With QuoteReport This Post
His Royal Hiney
Picture of Rey HRH
posted Hide Post
Here's what I do: I always insist on no closing costs, no origination fees, no interest pay downs. I want a straight APR.

The interest you are quoted should match what it says in the APR box. What I mean by this is with interest pay downs or origination fees, you will pay a smaller interest rate on the loan (for example, 3%) but for the APR box, they have to account for the origination fees and so the actual APR comes to 5% (again, for example).

The things you'll be expected to pay are escrow fees, documentation fees, maybe prorated property taxes. The escrow and doc fees should be in the hundreds of dollars at most.



"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
 
Posts: 19582 | Location: The Free State of Arizona - Ditat Deus | Registered: March 24, 2011Reply With QuoteReport This Post
Member
posted Hide Post
I just went with a Dave Ramsey recommended mortgage broker. The total cost of arranging the mortage-I mean everything-was less than a thousand bucks. Rates were competitive with everyone else. Took very little time to arrange and close.
 
Posts: 17121 | Location: Lexington, KY | Registered: October 15, 2006Reply With QuoteReport This Post
Little ray
of sunshine
Picture of jhe888
posted Hide Post
Of course you should get other offers and shop around.




The fish is mute, expressionless. The fish doesn't think because the fish knows everything.
 
Posts: 53117 | Location: Texas | Registered: February 10, 2004Reply With QuoteReport This Post
Member
Picture of SR
posted Hide Post
You should be getting a good faith estimate of closing costs from each lender you are considering.

The only advantage to one mortgage broker over the other is service. If you're current person stinks and/or you get a better rate have your loan package moved.

But base your rate comparison off the effective interest rate from the good faith estimate. Low initial rates can be offset by higher fees and closing costs.




Speak softly and carry a big stick loaded Sig
 
Posts: 4887 | Location: Raleigh, North Carolina | Registered: September 27, 2004Reply With QuoteReport This Post
Member
posted Hide Post
I've been a real estate Broker for almost 20 years and I'll just say that the interest rates/closing costs/monthly paymnent some lenders (certainly not all) will verbally tell you is not even close to what their final numbers end up being.
 
Posts: 1890 | Location: Lake of the Ozarks, Missouri | Registered: August 03, 2010Reply With QuoteReport This Post
Member
Picture of Perception
posted Hide Post
I would certainly shop around as much as you can. A tenth of a point can easily cost you tens of thousands (or even more) of dollars over the course of a mortgage. I prefer shopping locally too, but when that kind of money is involved it becomes a lot less important.




"The people hate the lizards and the lizards rule the people."
"Odd," said Arthur, "I thought you said it was a democracy."
"I did," said Ford, "it is."
"So," said Arthur, hoping he wasn't sounding ridiculously obtuse, "why don't the people get rid of the lizards?"
"It honestly doesn't occur to them. They've all got the vote, so they all pretty much assume that the government they've voted in more or less approximates the government they want."
"You mean they actually vote for the lizards."
"Oh yes," said Ford with a shrug, "of course."
"But," said Arthur, going for the big one again, "why?"
"Because if they didn't vote for a lizard, then the wrong lizard might get in."
 
Posts: 3509 | Location: Two blocks from the Center of the Universe | Registered: December 30, 2004Reply With QuoteReport This Post
Member
posted Hide Post
A little percent difference in rates can make a huge difference in your monthly payment. So I would definitely shop around.

We recently built a house and it was a miserable experience. Nothing like we naively thought it was going to be. So good luck!
 
Posts: 200 | Registered: January 01, 2012Reply With QuoteReport This Post
Savor the limelight
posted Hide Post
I tried a mortgage broker once. He had $1,500 in for his fee and the rate he was proposing wasn't any better than what a local banking was proposing sans fees. Shop around and don't feel the slightest bit guilty about it. It's your money and your credit.

With such low down payments, both FBA and conventional loans are going to require mortgage insurance premiums. With the FHA loan it is .85% for the life of the loan no matter how much you pay it down. With a conventional mortgage you'll pay private mortgage insurance (PMI), but it goes away when you pay the mortgage down to less than 78% loan to value ratio (LTV). The cost of PMI varies, but is more than what FHA charges. Also there is a front end fee for an FHA loan of $1,750 per $100,000 borrowed.
 
Posts: 10821 | Location: SWFL | Registered: October 10, 2007Reply With QuoteReport This Post
Banned
posted Hide Post
The mortgage broker's rates are negotiable. He gets paid a premium from the bank for securing a rate above par.

Shop it. You owe nothing to anyone. Make them earn your business.

I was a broker at one point - I will say I prefer dealing directly with my bank.
 
Posts: 5906 | Location: Denver, CO | Registered: September 16, 2004Reply With QuoteReport This Post
  Powered by Social Strata  
 

SIGforum.com    Main Page  Hop To Forum Categories  The Lounge    House buying/Mortgage questions

© SIGforum 2024