Good Mortgage Lenders? (Dallas, Richardson, Howe: real estate, insurance, good credit)

[EarthyPalette]

Anyone have recommendations for solid, reputable mortgage lenders/credit unions/banks in the area? I'm specifically looking for a good interest rate on a 30-year fixed.

BOA and other big lenders have all these "great" programs with no closing costs, PMI, etc. but wow, they sure hike up their rates to make up for it. Their rates are far above the national average.

Thanks!

[cdelena]

I used a broker to find the loan that fit my needs. They work nation wide using phone and internet so location is not important... I was located in Dallas, bought in Washington, used a broker in Utah, and the loan came from New York. A good broker can find the loan that will save you thousands and in todays market the cost to you will be in the $500 - 1000 range.

[KantLockeMeIn]

I'd suggest reading the Mortgage Professor and using an upfront lender. There are a lot of tricks the brokers play and it helps to know what they are before they bait and switch you.

The Mortgage Professor's Website

[evilnewbie]

If you do not have at least 20% down then I suggest you save up before buying a house.

[trifan76]

Originally Posted by evilnewbie

If you do not have at least 20% down then I suggest you save up before buying a house.

Can I ask why? Besides having no PMI, is there another reason?
Now a days first time buyers rarely have that 20%

[fratermus]

Originally Posted by Debsi

You should give Guardian Mortgage Co in Richardson a call.

We're not at the closing table yet, but we are working with a Guardian broker and he is handling our vanilla 30-yr fixed VA loan very professionally.

Closing on the 15th.

[KantLockeMeIn]

Originally Posted by trifan76

Can I ask why? Besides having no PMI, is there another reason?
Now a days first time buyers rarely have that 20%

There's a reason most lenders require PMI... because the risk is much higher of default. You are paying an insurance policy on defaulting on the loan.

I think it's good advice to wait until you have 20%, not only for PMI, but it also encourages a saving mentality. It ensures you start off with equity in your home, where God forbid you need to sell it in the first few years, chances are you will have some money in your pocket after 6% real estate agent fees and closing fees.

But... I'd personally make sure I had 20%, plus at least 3k in an emergency fund. You don't want to be broke and have a hot water heater break and have to take out a loan to get it replaced.

And I have to throw this out there as well... I'd suggest a 15 year loan as well. The sooner you can get a house payment out of the picture, the sooner you can throw that money into solid investments.

[Robzherenow]

I understand the need to save up at least 20%, but that can be very difficult these days for most people. I think Texas is one of the two states left in the U.S. that allows buyers to do a 80/20 (80% mortgage and 20% home equity). This arrangement avoids PMI. However, you may need good credit scores to qualify for this.

[KantLockeMeIn]

Originally Posted by Robzherenow

I understand the need to save up at least 20%, but that can be very difficult these days for most people. I think Texas is one of the two states left in the U.S. that allows buyers to do a 80/20 (80% mortgage and 20% home equity). This arrangement avoids PMI. However, you may need good credit scores to qualify for this.

Difficult? When the savings rate of the American public is -1%, and people spend needlessly, yes....

Do the people who claim it's difficult have car loans? Sell them, buy a cheap car and save money.

Do the people eat out 3-4 times a week? Cook more at home.

Do the people have home phones, each have cell phones, and subscribe to HBO? Trim the budget.

People will do what they want, and it has little impact on me, so I don't really care. But I don't buy the difficult statement. We live in a world of immediate gratification.

[CallMeLaura]

Originally Posted by twojciac

There's a reason most lenders require PMI... because the risk is much higher of default. You are paying an insurance policy on defaulting on the loan.

I think it's good advice to wait until you have 20%, not only for PMI, but it also encourages a saving mentality. It ensures you start off with equity in your home, where God forbid you need to sell it in the first few years, chances are you will have some money in your pocket after 6% real estate agent fees and closing fees.

But... I'd personally make sure I had 20%, plus at least 3k in an emergency fund. You don't want to be broke and have a hot water heater break and have to take out a loan to get it replaced.

And I have to throw this out there as well... I'd suggest a 15 year loan as well. The sooner you can get a house payment out of the picture, the sooner you can throw that money into solid investments.

Let's assume a first time buyer can get a house in DFW for around $130k. That's a down payment of $26,000. Plus, you'll need closing costs, which are estimated at about 3% of the purchase price, or $3,900. Plus reserves, using your figure of $3,000. This doesn't even count moving costs or deposits for utilities, or all the other stuff you need to pay for when you buy a house.

How long would it take you to save $32,900? And would the median house price still be $130k by then?