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I just signed contracts for my new home. I got preapproved by the mortgage company I am currently with...even though I got preapproval...I can still shop around right?
I was curious how people choose their mortgage company. Mine is very stable..but I want to shop around and see if there is a better rate. My husband and i have excellent credit scores above 775. Right now for a jumbo loan..I am at 6.75% or an 80-20 split I got 6.125% and 8.5%. Are these reasonable or do you think I can find a better rate?
First off, I am not a mortgage expert. However, my youngest son is a mortgage processor for Primera. So I asked him about your question.
He said that your mortgage will be sold to someone else. Perhaps to Wells Fargo or some other large banking corporation(?). I only use Wells Fargo to give you a name. But my son also says that Wells Fargo only does their own mortgages. So you perhaps can understand how complex the subject is.
My son also said that to get the best of two worlds, sign your mortgage with a company that is both a broker and also a lender.
I am sure that other people can add their own opinions and comments... perhaps better than mine.
Purchase price and loan amount is a huge factor in determing rates....as well as documentation type.
6.75% is the going rate for 30yr fixed mortgage for jumbos ...but that's with at least 5% down.
Quote:
Originally Posted by jenne03
I just signed contracts for my new home. I got preapproved by the mortgage company I am currently with...even though I got preapproval...I can still shop around right?
I was curious how people choose their mortgage company. Mine is very stable..but I want to shop around and see if there is a better rate. My husband and i have excellent credit scores above 775. Right now for a jumbo loan..I am at 6.75% or an 80-20 split I got 6.125% and 8.5%. Are these reasonable or do you think I can find a better rate?
I just signed contracts for my new home. I got preapproved by the mortgage company I am currently with...even though I got preapproval...I can still shop around right?
I was curious how people choose their mortgage company. Mine is very stable..but I want to shop around and see if there is a better rate. My husband and i have excellent credit scores above 775. Right now for a jumbo loan..I am at 6.75% or an 80-20 split I got 6.125% and 8.5%. Are these reasonable or do you think I can find a better rate?
Thanks
I'd shop for the best rate.
Why do you care if they are stable or not? It's not like shopping for insurance, where you're worried whether they pay out your policy or not. In the case of the mortgage, you "get the money" when you close on the house. If the mortgage company goes under, your loan will just be sold and serviced by someone else.
The best way to find a "good stable mortgage company" is to ask for a referral from freinds or family members who had a great experience with their mortgage company.
A good stable mortgage company will generate a lot of repeat clients and raving fans.
another thing to be wary of with brokers are higher closing costs with "origination" fees they have to charge to get paid for doing the loan. lenders like wells afrgo don't typically charge this fee... it's up to you whether or not you want to buy your rate down using discount points.
i beg to differ....if you go to their website you will see the fine print
"All rate quotes shown come with one point as an origination fee."
found on their website.
Brokers can charge an origination fee or YSP...but need to disclose how much money they're making.
A Bank doesnt have to disclose the YSP so you wont know if you got a good rate or not!
Quote:
Originally Posted by jimbo13
another thing to be wary of with brokers are higher closing costs with "origination" fees they have to charge to get paid for doing the loan. lenders like wells afrgo don't typically charge this fee... it's up to you whether or not you want to buy your rate down using discount points.
another thing to be wary of with brokers are higher closing costs with "origination" fees they have to charge to get paid for doing the loan. lenders like wells afrgo don't typically charge this fee... it's up to you whether or not you want to buy your rate down using discount points.
This is incorrect. The lender/loan officer/broker can make thier money in the front with fees, on the back through the interest rate/SRP/YSP or a combination of both.
Brokers can charge an origination fee or YSP...but need to disclose how much money they're making.
A Bank doesnt have to disclose the YSP so you wont know if you got a good rate or not!
I don't quite follow your logic. Assuming the closing costs are the same, if I can get a lower rate from a bank vs. a broker, how is it not a good rate?
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Your Mortgage Will Be Sold
