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Old 04-03-2013, 08:49 AM
 
16 posts, read 38,186 times
Reputation: 22

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So we got pre-approved and our offer has been accepted now we need to fill out applications? We have to have approval by Friday (two days away) so that doesn't really give us time to shop. If we fill out an application from one bank can we still do it with others to get their rates and fees?
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Old 04-03-2013, 11:47 AM
 
Location: Wake Forest, NC
835 posts, read 3,739,755 times
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Get a referral for a Loan Officer from a trusted source: friend, relative, co-worker etc...
Don't worry so much about the name on the building as the Loan Officer you will be working with.
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Old 04-03-2013, 12:07 PM
 
3,806 posts, read 8,269,335 times
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Although there are 26 factors that determine an interest rate, you have the pertinent few that will allow you to ask a few trusted sources.

Single family residence or condo or multi unit?

Owner occupied?

LOWEST mid-fico among all borrowers?

Price?

Down payment amount?

State in which you are buying?

Escrow taxes and insurance? (yes or no)

Loan type? (Conv/FHA/VA/USDA)

Term? (30-year fixed? 15?)
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Old 04-03-2013, 11:44 PM
 
8 posts, read 10,536 times
Reputation: 10
Definitely yes!

I'll share you our experience...

We are just about to close our new house and we requested a number of offers to compare.

At first we tried online with FHA, since we do not have knowledge about this as first time buyer. But it is my SIL who told us to go to the bank, we've inquired to 3banks ! Then we learned that there's a big difference between FHA and Conventional Loan with dp in monthly payment.

If we compare like in a $300K 30yr loan, the monthly payment will result like this~$2000 FHA (with Mortgage Insurance) vs $1700 to $1800 Conv loan with 5% dp (Amount of MI will depend on the bank you'll gonna choose but minimal only).

Definitely, we decide on the Conv loan with 5% dp and the bank that we chose has no MI and with the best offer.

My advice, you are free to look and choose... it's the monthly amount you'll pay matters.
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Old 04-04-2013, 04:54 AM
 
Location: MID ATLANTIC
8,152 posts, read 20,033,970 times
Reputation: 9391
It sounds like your back is against the wall and you really do not have the luxury to shop around to meet your requirements. Get a few recommended names and compare rates - let one pull your credit under the condition they share with you the scores, payments in the report and any derogatory comments. Share that info with other lenders, but do not let all pull your credit. Hopefully, you've already met with someone and they have advised you on what kind of financing you are eligible for.........the worse thing you can do is accept what you can find, just because your back is against the wall. Why only 48 hours? Have you been passing the time w/ a home inspection?
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Old 04-04-2013, 06:33 AM
 
Location: Wake Forest, NC
835 posts, read 3,739,755 times
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[quote=quel_dc;28970065]Definitely yes!



Definitely, we decide on the Conv loan with 5% dp and the bank that we chose has no MI and with the best offer.



This is a common misconception. If you don't have 20% down or split 80/10 you have MI.
There are 3 ways to pay it:
1- Monthly which gets eliminated eventually.
2- Hybrid which is a lump sum up front and lower monthly MI. The up front lump sum is usually paid with by a lender credit for a slightly higher rate maybe .125-.25%. This monthly eventually gets eliminated.
3- Lender Paid Mortgage Insurance or to the public a no MI loan. There is a lump sum paid through lender credit in exchange for a higher rate maybe .375-.5% higher. This MI never gets eliminated as it is buried in the rate.

This is for all Fannie/ Freddie/ FHA loans. If using a credit unoin or portfolio lender its the new golden rule---- their gold their rules.
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Old 04-04-2013, 08:25 AM
 
8 posts, read 10,536 times
Reputation: 10
If I only knew this forum, I should have ask you guys before closing and thanks dad2jules, got you there...

But out of 3 banks, we chose not bec of the MI but the one who gave us the best offer~monthly pay and interest.
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Old 04-04-2013, 02:42 PM
 
3,806 posts, read 8,269,335 times
Reputation: 4948
[quote=dad2jules;28971751]
Quote:
Originally Posted by quel_dc View Post
Definitely yes!



Definitely, we decide on the Conv loan with 5% dp and the bank that we chose has no MI and with the best offer.



This is a common misconception. If you don't have 20% down or split 80/10 you have MI.
There are 3 ways to pay it:
1- Monthly which gets eliminated eventually.
2- Hybrid which is a lump sum up front and lower monthly MI. The up front lump sum is usually paid with by a lender credit for a slightly higher rate maybe .125-.25%. This monthly eventually gets eliminated.
3- Lender Paid Mortgage Insurance or to the public a no MI loan. There is a lump sum paid through lender credit in exchange for a higher rate maybe .375-.5% higher. This MI never gets eliminated as it is buried in the rate.

This is for all Fannie/ Freddie/ FHA loans. If using a credit unoin or portfolio lender its the new golden rule---- their gold their rules.

There is no Lender-Paid component available to FHA. There is both up-front AND monthly, the amounts of which vary according to several criteria, and can only be manipulated by changing down payment amount and term, but cannot be avoided with a Lender paid or fully up-front policy.

Additionally, as of 6/3/2013, the monthly MIP component on FHA loans will remain on the loan for the entire term, regardless of equity.
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Old 04-04-2013, 02:55 PM
 
Location: Wake Forest, NC
835 posts, read 3,739,755 times
Reputation: 648
Didn't mean to mislead in insinuating FHA had lender paid. Just that on Fannie/ Freddie and FHA there was one type or another of MI.
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