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Old 06-10-2008, 01:49 PM
 
10 posts, read 38,931 times
Reputation: 14

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I am planning to buy a new home in the Frisco, TX area and having really difficulty on getting good faith estimate (GFE). Anybody have any idea If I am to lock the rate for 5-6 month do I need to pay higher Interest rate and also pay points (or pay extra)? How Mortgage company is supposed to interact with me? like do they give me in-writing about all the detail including Interest rate, closings cost, pre-pay etc? Or they will keep them open and ONLY tell the total cost/ monthly payment at the closing table?
How to get a good rate at this market condition and GFE from good mortgage company?
Thanks.
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Old 06-10-2008, 02:39 PM
 
308 posts, read 1,140,583 times
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GFE usually are only good for 30 days (sometimes 20 days) you can pay more points to lock it in for 60 days, but I have never heard of locking in the rate for 5 to 6 months.

If you can't get a GFE from the mortgage company, go somewhere else or speak to a different person at the company.
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Old 06-10-2008, 06:06 PM
 
Location: Norcross GA
983 posts, read 4,189,185 times
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GFE is required by law or the laws governing the mortgage industry. So find another lender is my advice. Imagine the problems you will have down the road.

And yes they have to disclose all the items that you have mentioned.
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Old 06-10-2008, 08:02 PM
 
7 posts, read 34,585 times
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Default Referrals important

I would not go to a large lender, as they can't "shop" around. I can dig up a couple good referrals if you need one.
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Old 06-10-2008, 08:04 PM
 
7 posts, read 34,585 times
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P.S. I'm in McKinney. Having someone local to work with is nice too. (I.E. comes to your closing, etc.)
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Old 06-10-2008, 08:50 PM
 
Location: Dallas/Fort Worth, Texas
4,170 posts, read 13,947,615 times
Reputation: 2607
Quote:
Originally Posted by mkh12 View Post
I am planning to buy a new home in the Frisco, TX area and having really difficulty on getting good faith estimate (GFE). Anybody have any idea If I am to lock the rate for 5-6 month do I need to pay higher Interest rate and also pay points (or pay extra)? How Mortgage company is supposed to interact with me? like do they give me in-writing about all the detail including Interest rate, closings cost, pre-pay etc? Or they will keep them open and ONLY tell the total cost/ monthly payment at the closing table?
How to get a good rate at this market condition and GFE from good mortgage company?
Thanks.
mkh12, I hope that this explanation from the Federal Reserve on lock-ins helps you understand the process better.

http://www.federalreserve.gov/pubs/lockins/default.htm

Also, a lender is not required to give you a GFE unless you have filled a loan application. Once they receive it, they are obligated by law to give you a GFE within 3 days of receipt of your application.

If you are saying you are buying a "new home" do you mean from a builder? are they requiring you to use their mortgage company? You can require that ALL the fees are set upfront and in writing so there are no surprises at closing. The following ones will likely change:

Escrow withholdings: Taxes and insurance
Tax proration: it would depend on the day you close
Insurance: rate you are quoted from the carrier you choose
Interest proration, HOA proration based on the day you close as well.

May be others depending on the type of loan is a better fit for you.

Your Realtor can also prepare an estimate of closing costs for you but it would be informal too since the final say would come from your lender. (at least you would know what is normal and what isn't) and you can be told what you can negotiate on and not.

Naima
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Old 06-16-2008, 04:28 PM
 
10 posts, read 38,931 times
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Thanks to all of you.
I will try to contact the other local Mortgage company.
Any suggestion who could be my best pick in terms of meeting buyer's expectation with resonable closing cost and interest rate?
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Old 06-16-2008, 08:06 PM
 
Location: Dallas, TX
2,346 posts, read 6,231,708 times
Reputation: 2306
Default Re:

In my opinion, I would go with a large mortgage firm. For a lot of mortgage brokers, the "shopping around" involves them figuring out what mortgage generate the most money for them, not what is best for you, the client. And let's face it, a mortgage broker is inserting himself into the equation, and will need his cut, which will come out of your hide.

It sounds like whoever you are dealing with right now is jacking you around. Ditch them.

You can get zero-BS service from most large banks - Wells Fargo, for example. You tell them what you need, they tell you what they can offer. Full disclosure - none of this voodoo "Your overall total is $XXX". Go around to 3 or 4 large banks and you'll probably find a competitive rate without phony fees or excess commissions.
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Old 06-16-2008, 08:14 PM
 
Location: Dallas/Fort Worth, Texas
4,170 posts, read 13,947,615 times
Reputation: 2607
I have found that the best fees are those charged by a credit union. I you are a member, I recommend that you go there first.

Naima
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