Good Mortgage Broker (Atlanta: insurance, credit score, equity loans)

[noah]

Can anyone recommend a good, honest mortgage broker or even a lender in Atlanta.

[George Chong]

Originally Posted by noah

Can anyone recommend a good, honest mortgage broker or even a lender in Atlanta.

Yes - I will send you two via PM.

[ffej]

As a newcomer to ATL without any solid leads on a lender, I used Primacy Mortgage, based solely on their high ratings on KUDZU.com. Their customer service was top notch and they were very available to answer all my questions. I'd recommend them and would use them again myself. There were no hinky charges or surprises either. When the lender asked for further comps and other misc. items, Primacy was quick to ensure that they had it ASAP.

Good luck!

[neil0311]

If your credit score is good, you are much better off going direct to the lender. Often the broker charges you origination or other points as compensation for their "services". You can often elimiate or reduce these costs by doing the research and contacting lenders yourself.

If your credit isn't good, you will probably have little luck getting a loan in today's market, unless you have a high equity stake via a nice downpayment.

[noah]

Originally Posted by neil0311

If your credit score is good, you are much better off going direct to the lender. Often the broker charges you origination or other points as compensation for their "services". You can often elimiate or reduce these costs by doing the research and contacting lenders yourself.

If your credit isn't good, you will probably have little luck getting a loan in today's market, unless you have a high equity stake via a nice downpayment.

Thanks. My credit is good but at least until now the way the industry has been setup the deals through brokers have been just as good, because the lenders compensate them well and as such they don't offer a better deal by going direct to them. May be the case though that some lenders, especially the small ones keeping their own loans that going direct will be cheaper.

[neil0311]

Originally Posted by noah

Thanks. My credit is good but at least until now the way the industry has been setup the deals through brokers have been just as good, because the lenders compensate them well and as such they don't offer a better deal by going direct to them. May be the case though that some lenders, especially the small ones keeping their own loans that going direct will be cheaper.

You may find that to be the case, but if you have an existing relationship with a credit union, bank, or group lender (AAA for example), you can often get good rates with little more than just an application fee, appraisal fee, and the normal pre-paids, title insurance, and closing fees. Many brokers charge a point or more for origination, and with credit getting tighter, the lenders don't need to referrals.

[ffej]

FWIW, you are going to pay for a loan whether you pay points, origination or nothing. You'll either pay up front or get a higher rate. By all means, shop around. Just don't ASSume that you'll be getting a better deal because you are dealing directly with a lender. I've done it both ways and have found good deals going with both lenders and brokers. Shop around and get a good faith estimate from the lender/broker. If it looks like it is too good to be true and there are more empty spaces than costs on the GFE, I'd be skeptic.

Good luck!

[ffej]

Originally Posted by neil0311

You may find that to be the case, but if you have an existing relationship with a credit union, bank, or group lender (AAA for example), you can often get good rates with little more than just an application fee, appraisal fee, and the normal pre-paids, title insurance, and closing fees. Many brokers charge a point or more for origination, and with credit getting tighter, the lenders don't need to referrals.

Banks, like brokers, have point/no point and origination/no origination options. If the rate is attractive and you're going to stay in the home awhile, I wouldn't fear a point or two up front on a purchase. For a re-fi, you have to deduct the points over the life of the loan so it is less attractive. Perhaps a lender or accountant can explain it better.

FWIW, I did a refi through a credit union and their fees were about the same as every place else. I did get a GFE from SunTrust and they were very high, while IndyMAC (R.I.P. ) gave me a good deal.

Bottom line, shop around, though price isn't everything. It isn't going to do you much good to get a loan with little/no costs only for them not to have the money at closing ... have heard horror stories about that!!!!

[sweettea1]

To tack onto this question...is it true that for a single family residence, you have to put down at least 20% for all loans?

[neil0311]

Originally Posted by sweettea1

To tack onto this question...is it true that for a single family residence, you have to put down at least 20% for all loans?

Not normally. By law, it used by that if you had less than 20% equity in your home, then the lender would add private mortgage insurance (PMI).

With the mandates in the CRA and expansion of the sub-prime market in the mid-1990's, the previous FHA requirements for 3-5% minimum down payments (with excellent credit) were replaced by 0 down, 100% financed loans. The assumption was that home prices would just keep appreciating, and many borrowers took out so-called "piggyback" loans, with an 80% first and 20% second mortgage. This meant people were borrowing their downpayments and getting around the PMI requirement.

This is one of the huge contributors to the current crisis...giving people low or no equity loans without the requirement for PMI. My guess is that many lenders will begin or have begun to tighten down, and you will either need 20% with no PMI or 5% with PMI. Just my guess and it will depend on your credit score and income.