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Old 06-20-2014, 12:45 PM
teb teb started this thread
 
76 posts, read 80,240 times
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I am in the market for a new mortgage loan, and have excellent credit. How do I go about getting the best interest rates?
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Old 06-20-2014, 12:56 PM
 
139 posts, read 169,374 times
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Online lenders normally give best interest rates, since they are low cost-high volume type. Unless you want your lender being local, try zillow.com or bankrate.com for quotes.

If not, contact a local mortgage broker/local lender. I suggest you stay away from big banks.
Another piece of advise, almost all lenders will give you same rate since your credit is good, but pay attention to what fees they are charging you for that rate.
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Old 06-20-2014, 03:30 PM
 
435 posts, read 615,263 times
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I have an excellent credit. This is what I did when I was in market to shop for a mortgage on my new construction home a month ago:

1. Checked with big banks (Chase/Wells Fargo/BofA), mid-size banks (BB&T, BBVA Compass, Regions etc.), couple of credit unions, local mortgage brokers recommended by Angie's list, forum members, friends and my agent. [I think I got all the quotes within 48 hours of window so I can do apple-to-apple comparison on rates. Rates fluctuate on daily basis based on 10 yr Treasury note yield]

2. Compared interest rate (not APR), lender's fixed closing cost, difference in fees/rate for waiving escrow. [Different lender's will give you different formatted fees sheet to create confusion, but always avoid comparing title company related fees which will remain the same]

3. I asked all lenders about their average time frame to close from the date of an application, and what kind of guarantee they will provide if they miss the closing date due to the delay on their side. [For conventional loan with a good credit, banks told me to take about 3 weeks to close on average and brokers said minimum 2 weeks if seller is in hurry to close]

4. Don't waste your time on doing match quotes if the best quote is too far apart from 2nd best quote. I tried and no lender beat the best quote I got.

Since I was buying for the first time, I did not feel comfortable to do an entire loan process over the phone. I preferred to meet and talk to a real person in office. I also checked with online companies but did not see any savings compare to the lender with whom I processed my loan.

I went with the mid-size bank and loan was ready to close within 3 weeks from the date of an application. Excellent service during the entire process with no surprises from the lender side.

Overall I felt that mortgage brokers were not competitive in rates compare to banks. Their interest rates and fees were higher than the best quote I picked up for my mortgage. I have seen a gap of 0.5% interest rate between two lenders giving their quote for the same conventional loan on same day.

Bottom line, do your shopping at all different places since you have a good credit. But pick the one that saves you the most instead of just having a myth "Banks are always slow" in back of your mind. I would go with mortgage broker only if either you are saving money compare to banks or you have a very small window left to close on your home.

I am sure you will see many other members on forum recommend to go with brokers, but in my case I found the best rate from a bank not from mortgage broker.
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Old 06-21-2014, 12:35 PM
 
161 posts, read 211,946 times
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Default comparing costs

Quote:
Originally Posted by dallas_cowboy View Post
2. Compared interest rate (not APR), lender's fixed closing cost, difference in fees/rate for waiving escrow. [Different lender's will give you different formatted fees sheet to create confusion, but always avoid comparing title company related fees which will remain the same]
So as I look at the itemized fees below, what is the part to avoid comparing? Title Insurance, Title Closing/Escrow, Owner Title Insurance?

On paper, comparison #1 is a better deal. Am I missing anything when comparing that I should on these based on the fee sheets I requested from two companies? Same amount for loan and interest rate. Thanks for the help.


Comparison 1-$2,521

Appraisal Fee $400.00 / 0.00
** Credit Report Fee 15.00 / 0.00
4506 IRS Form 60.00 / 0.00
Appraisal Review Fee 110.00 / 0.00
Tax Service Fee 66.00 / 0.00
Processing Fee 225.00 / 0.00
Underwriting Fee585.00 / 0.00
Document Preparation 240.00 / 0.00
Title Insurance ]0.00 / 1,911.00 S
Title Closing/Escrow fee 300.00 / 0.00
Owner's Title Insurance 220.00 / 0.00
Recording Fee - Deed 50.00 / 0.00
Recording Fee - DOT 125.00 / 0.00
City/County Mortgage Tax/Stamp Fee 80.00 / 0.00
Flood Certification10.00 / 0.00
State Guaranty fee 5.00 / 0.00
Verification of Employment 30.00 / 0.00


Comparison 2-$2,939

Appraisal $450
Processing Fee $450
Underwriting Fee $650
Attorney Doc Prep $50
Title Other $430
Closing Fee-Lender $345
Tax Service Fee $89
Recording Fee $125
Other Services $350












Last edited by clickbear; 06-21-2014 at 12:50 PM..
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Old 06-22-2014, 01:46 AM
 
Location: Dallas/Fort Worth, Texas
4,152 posts, read 13,730,303 times
Reputation: 2576
Quote:
Originally Posted by clickbear View Post
So as I look at the itemized fees below, what is the part to avoid comparing? Title Insurance, Title Closing/Escrow, Owner Title Insurance?

On paper, comparison #1 is a better deal. Am I missing anything when comparing that I should on these based on the fee sheets I requested from two companies? Same amount for loan and interest rate. Thanks for the help.


Comparison 1-$2,521

Appraisal Fee $400.00 / 0.00 400 to 450 is normal
** Credit Report Fee 15.00 / 0.00
4506 IRS Form 60.00 / 0.00 Unusual
Appraisal Review Fee 110.00 / 0.00 Unusual, why would they expect a review unless they know that the home won't appraise
Tax Service Fee 66.00 / 0.00
Processing Fee 225.00 / 0.00
Underwriting Fee585.00 / 0.00
Document Preparation 240.00 / 0.00
Title Insurance ]0.00 / 1,911.00 S Not negotiable. It is set by the state but typically the seller pays for it
Title Closing/Escrow fee 300.00 / 0.00
Owner's Title Insurance 220.00 / 0.00
Recording Fee - Deed 50.00 / 0.00 extra the 125 should cover all recordings
Recording Fee - DOT 125.00 / 0.00 typical
City/County Mortgage Tax/Stamp Fee 80.00 / 0.00
Flood Certification10.00 / 0.00
State Guaranty fee 5.00 / 0.00
Verification of Employment 30.00 / 0.00 Seriously? They're charging you for someone to make a phone call to your employer?


Comparison 2-$2,939

Appraisal $450
Processing Fee $450
Underwriting Fee $650
Attorney Doc Prep $50
Title Other $430
Closing Fee-Lender $345
Tax Service Fee $89
Recording Fee $125
Other Services $350

Too vague with too many "other"

I noticed that neither one is charging you a loan origination fee. If that's the case, you're in good shape as long as you're getting a good interest rate.

Good luck,

Naima
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Old 06-22-2014, 02:30 PM
 
161 posts, read 211,946 times
Reputation: 60
Quote:
Originally Posted by nsumner View Post
I noticed that neither one is charging you a loan origination fee. If that's the case, you're in good shape as long as you're getting a good interest rate.

Good luck,

Naima
Naima and Dallas cowboy

I sent you a dm each.

Can anyone dm me any mortgage lenders that does the final underwriting in-house and they close the loan versus sending it out?
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Old 06-22-2014, 07:22 PM
 
435 posts, read 615,263 times
Reputation: 229
Quote:
Originally Posted by clickbear View Post
So as I look at the itemized fees below, what is the part to avoid comparing? Title Insurance, Title Closing/Escrow, Owner Title Insurance?

On paper, comparison #1 is a better deal. Am I missing anything when comparing that I should on these based on the fee sheets I requested from two companies? Same amount for loan and interest rate. Thanks for the help.


Comparison 1-$2,521

Appraisal Fee $400.00 / 0.00 [$400 to $450 is what I have seen in all quotes. My lender charged $450, but did not charge extra $100 for 2nd inspection on a new construction. Make sure you clarify with your lender about 2nd inspection if it's a new construction, because home must be complete in order for appraiser to give final appraisal report as approved for the appraised price.]
** Credit Report Fee 15.00 / 0.00 [That's normal. I have seen between $8 to $20]
4506 IRS Form 60.00 / 0.00 [Looks unique. My lender did not charge extra to order Tax Transcript. Avoid paying this fees]
Appraisal Review Fee 110.00 / 0.00 [Avoid paying this. Appraisal fee is all you should pay]
Tax Service Fee 66.00 / 0.00 [Looks normal]
Processing Fee 225.00 / 0.00 [Looks normal. I paid $300]
Underwriting Fee585.00 / 0.00 [Looks on a higher side. I paid $375]
Document Preparation 240.00 / 0.00 [I paid $135]
Title Insurance ]0.00 / 1,911.00 S [Normally paid by Seller. So don't worry about this number if your seller has agreed to pay]
Title Closing/Escrow fee 300.00 / 0.00 [Looks normal. This comes from Title Company, so subject to what Title company charges you. Don't count this amount when comparing lenders]
Owner's Title Insurance 220.00 / 0.00 [
Looks normal. This comes from Title Company, so subject to what Title company charges you. Don't count this amount when comparing lenders]
Recording Fee - Deed 50.00 / 0.00 [I paid in total $152 for entire recording fee. Not divided into Deed and DOT]
Recording Fee - DOT 125.00 / 0.00
City/County Mortgage Tax/Stamp Fee 80.00 / 0.00 [I don't recall of paying this.]
Flood Certification10.00 / 0.00 [Looks fine. I paid $5.6]
State Guaranty fee 5.00 / 0.00
Verification of Employment 30.00 / 0.00 [It's junk. Never saw on all quotes I received. Avoid paying this.]


Comparison 2-$2,939

Appraisal $450
Processing Fee $450
Underwriting Fee $650
Attorney Doc Prep $50
Title Other $430
Closing Fee-Lender $345
Tax Service Fee $89
Recording Fee $125
Other Services $350


The best thing is to ask your lender to mark out fees coming from their file and fees which are estimated for Title Company. This will give you a clear picture of what you *MUST* pay to the lender. Each lender uses their own formatted fees sheet which I always got confused when first looking at it. I strictly asked them to point out their *FIXED* fees. So you only compare those when comparing other lenders.

If you are going with Fannie Mae Conventional Loan 30 or 15 yrs with fixed interest rate and paying 20% down payment, then avoid choosing lenders who charge 1% or similar points in their base rate. [I saw 2 Credit Unions gave me similar quotes with 1% original fees]. I have seen most of Lender's fixed total closing fees in the range of $800 to $1200 + Appraisal fee.
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Old 06-22-2014, 07:28 PM
 
435 posts, read 615,263 times
Reputation: 229
Quote:
Originally Posted by clickbear View Post
Naima and Dallas cowboy

I sent you a dm each.

Can anyone dm me any mortgage lenders that does the final underwriting in-house and they close the loan versus sending it out?
Your question makes me feel like you have talked with one of the mortgage broker whose fees and/or rates may not be the best in the marketplace, but they advertise themselves by stating they have in-house underwriting so they can close within assured time. I have heard these stories in last month, so I somewhat know their marketing strategy.

in-house underwriting makes a difference only if loan has to be closed in an extremely small amount of time from the date of contract.

Is your house already under contract? Is it a new construction or pre-owned? When do you need to close?
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Old 06-23-2014, 07:54 AM
teb teb started this thread
 
76 posts, read 80,240 times
Reputation: 31
Great advice!

When I purchased a house 20 years ago, my realtor told the mortgage company that we would not be paying any junk fees which resulted in reducing the cost by about $2300.
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Old 06-23-2014, 07:59 AM
 
Location: Texas
44,246 posts, read 54,831,303 times
Reputation: 73244
I refied in 2012. My friend works for a mortgage company and did my original loan. I did not want go hit him up again.

Just walked into the bank I use and said, "What about these 2-3% mortgages I keep hearing about?"

Then they gave me 2.8% and a bunch of discounts/waived fees on closing bc I bank there.

Go ask your personal banker.
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