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So I'm thinking about getting my first home soon, and there's a lot of lending companies online that I've never heard of on bankrate.com and lendingtree.com
Companies such as "Sebonic Financial" and "Roundpoint". They have really low APR rates
Are these companies trustworthy? On Zillow.com's mortgage webpage, there are thousands of positive reviews for Roundpoint, but nearly every review seems to be written by the company itself. It seems that way because the grammar and style of each review is very similar to all the others, and is overall just way above what I'd expect an average real customer to be posting.
Anyone have experience getting a home loan from one of these online lenders? Any recommendations? Thanks
It sounds like you want reassurance to do business with a company which you feel has questionable business practices. I'm pretty sure no one is going to support you on this one. Maybe if you asked , where can I get the lowest APR, I don't care about educating myself of other options which may save me more money in the future, you actually might get a better response. Even then lender rates are change one day company A will have lower rates then B, but then B changes their rate to be lower than A, so no one will publicly say go to joe online and tie their reputation on it, but you'll get private message.
I don't know how you define online companies, but I'd say almost all companies are online now. Also just because you found it online doesn't mean you are getting the best "deal" , neither does walking into a local branch. There is online hype and the perception that you got a deal just because you got it on line, but it may not be the case. If you want to be an APR shopper , that's up to you. Someone is still making money from you online, it is just better hidden.
Big bank, local lender, local broker or online lender?
What's truly the difference between all of these choices?
A better question is, what do you really get for your money by going to a big bank, local lender, local broker or online lender?
Most big banks process their loans in large regional operations centers and it takes 90+ days to get a loan closed. If you think you're protected because of their big name, you're sadly mistaken. Good luck finding any level of service working with a large bank. Also, you'll pay a lot more for this lack of service through a higher rate and higher fees.
Local lenders offer the same high rates as a large national bank. You do get the opportunity to look them in their eyes as they overcharge you for their services. A local lender can get your loan closed, but more often than not, their rates and fees are not competitive.
Brokers have to use a large bank to get their loans funded, so they're just as bad as the large banks and they have even less control.
Online lenders have the best rate/fee programs in the industry. It's a very competitive marketplace and that's why you see so many complaints about being bombarded when inquiring through platforms like LendingTree. Rate tables like Zillow.com and Bankrate.com allow you to pick the lenders you call/email so you can control the number of people that contact you.
Next, you have to make sure that you take your time with an online lender and place a complete loan application in the beginning. If you're self employed, or have any unique circumstances; slow down and communicate!!! If you think that you can hold back information and sneak through the process, you'll end up complaining online that you worked with a bait and switch lender...
To confirm that you're working with a licensed agent, you can look on the NMLS registry ([url=http://www.nmlsconsumeraccess.org]Consumer Access[/url]). You'll be able to see if they've had any complaints filed against them to your state regulator, how long they've been in business and confirm that they're a viable lender. The NMLS registry was established as part of the SAFE Act of 2008 to create transparency in the mortgage marketplace. If you're talking to an online lender: do your research, talk to more than a few lenders and find someone who knows what they're talking about!
Finally, if you feel like you're being pushed or "hard closed" you are. Find a consultant not a salesperson. Stay away from anyone looking for an application to quote a rate. Stay away from anyone that's looking for an upfront fee, aside from an appraisal fee at the time of locking a rate. Most importantly, make sure you're active in the process of getting your mortgage. If you sit on your hands and delay getting paperwork into the lender, you are at fault for your bad experience.
What's truly the difference between all of these choices?
A better question is, what do you really get for your money by going to a big bank, local lender, local broker or online lender?
Most big banks process their loans in large regional operations centers and it takes 90+ days to get a loan closed. If you think you're protected because of their big name, you're sadly mistaken. Good luck finding any level of service working with a large bank. Also, you'll pay a lot more for this lack of service through a higher rate and higher fees.
Local lenders offer the same high rates as a large national bank. You do get the opportunity to look them in their eyes as they overcharge you for their services. A local lender can get your loan closed, but more often than not, their rates and fees are not competitive.
Brokers have to use a large bank to get their loans funded, so they're just as bad as the large banks and they have even less control.
Online lenders have the best rate/fee programs in the industry. It's a very competitive marketplace and that's why you see so many complaints about being bombarded when inquiring through platforms like LendingTree. Rate tables like Zillow.com and Bankrate.com allow you to pick the lenders you call/email so you can control the number of people that contact you.
Next, you have to make sure that you take your time with an online lender and place a complete loan application in the beginning. If you're self employed, or have any unique circumstances; slow down and communicate!!! If you think that you can hold back information and sneak through the process, you'll end up complaining online that you worked with a bait and switch lender...
To confirm that you're working with a licensed agent, you can look on the NMLS registry (Consumer Access). You'll be able to see if they've had any complaints filed against them to your state regulator, how long they've been in business and confirm that they're a viable lender. The NMLS registry was established as part of the SAFE Act of 2008 to create transparency in the mortgage marketplace. If you're talking to an online lender: do your research, talk to more than a few lenders and find someone who knows what they're talking about!
Finally, if you feel like you're being pushed or "hard closed" you are. Find a consultant not a salesperson. Stay away from anyone looking for an application to quote a rate. Stay away from anyone that's looking for an upfront fee, aside from an appraisal fee at the time of locking a rate. Most importantly, make sure you're active in the process of getting your mortgage. If you sit on your hands and delay getting paperwork into the lender, you are at fault for your bad experience.
Quite a bit of "nope" going on here.
Talk to anyone who has completed an online request for lenders to "compete" for their business. You will stare into they abyss that is their blank stare as they recount how many times they were contacted, how they forgot who the Hell they were talking to, and how they will forever regret opening up to the lowest scum in banking.
Then, about a month later, when their information was sold AGAIN, waves of calls and emails, promises and lies made them actually contemplate changing their phone number.
Then, later, when the credit bureaus themselves SOLD their info in the form of Trigger Leads, it all happened again.
Peolpe who pursue online mortgage quotes deserve that Hell. Because they are both stupid and gullilble.
Talk to a human being. Your pwecious widdle .125% in rate differential results in you being treated like a human being, by a human being.
We have had a couple of excellent experiences with online lending for purchases and a refi using AIM Loan, good rates and easy to deal with. I am sure there are dodgy online lenders, but there are also plenty of dodgy local mortgage brokers. At least you can usually get some feedback on the larger online lenders.
I would not recommend using an on-line service, especially for your first home purchase. I am hoping to close on my 6th home purchase next week. I am using Quicken on line. I used them before for my 5th home and it was a great experience, so I decided to use them again. Well, this time it was not a good experience. (BTW homes are bought and sold as I move around in my job, which allows moving. I do not have bunch of homes...)
My loan should have been an easy one: 25+ years with the same employer, 800+ credit score, housing to income costs with the new loan less than 10%, 45 day escrow, 20% down, nothing to be of concern in a loan
All was well at first, but after they got all the paperwork from me, they transferred me so a person who is not competent. She lost e-mails and faxes, and did not care. On the phone she would confirm that she received a fax, but then a few days later underwriting would ask for it again and she would say she did not have it. Timing meant nothing to her and she would not contact me.
IF this would have been a local bank, etc. I could have gone in and talked to someone. However, on-line the options are very limited. When the assigned person did not respond I asked the previous person if she could assist, but all she could/would do is ask the assigned person to contact me, which did not change things.
I certainly know that with Quicken, even as a repeat customer with good credit, and who had in the past referred people to them, I am just a number and they do not really care. Will I close on time?, not looking likely right now, but will close a few days late. Why? Because Quicken's employee did not care enough to move the paper to the next file, nothing to do with me, my approvability, the home, etc. just they did not care enough to finish they work when they had all the papers a month before they needed them, and 2 weeks before their internal 'drop dead' date of 11 days before the closing date.
If it was a real office I could have talked to someone and it would have been done...on time.
I'd suggest looking for someone near your destination home and setting up a relationship with them.
The typical consumer has no idea how mortgages have changed in the past 18 months. When they can't get an answer in the next 3 phone calls, they will start to worry. Then they come here, where everyone is publishing their problems, seeking reassurances and we tell them it's likely their loan officer barely has training, after all, why would anyone with experience work for an online company that doesn't pay? Most of these posts are from Fall 2013, but some things never change.
I assume you are working with a real estate agent. Ask them who they would recommend and start there. Your agent should know which ones have good customer service and which ones jack around until a week before closing to order the appraisal.
Instead of concentrating on the APR, look at the total fees they charge.
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Big bank, local lender, local broker or online lender?
