How accurate are the rate quotes on Bankrate.com? (loan officer, credit score, 15 year fixed)
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So I am trying to buy something, and currently working with a lender that I like that has been very helpful (and was comparable in rates to other companies that I had spoken to initially), but with rates going up, just trying to make sure I'm at least getting a decent rate even if it's not the "best."
However, the rates this lender has been saying recently (which could maybe be overestimating), seem a good bit higher (~0.35-0.4%) than what I'm seeing on bankrate.com, and I did end up even going to one of the specific websites and speaking to someone that did confirm the rate that was listed online (although didn't do an actual prequalification). I know with some of these companies you are risking terrible customer service and potential hidden fees (although the website does quote lender fees and points), but it still seems like the cost savings could be fairly significant.
I know rates are constantly changing and it will depend on your specific situation, but their website does ask for zip code, purchase price, down payment, and credit score and when I change around those numbers so do the rates. So for example if you are putting down 20% and have "excellent" credit, shouldn't you be getting at least pretty close to the "best" rate?
There are books written about shopping for rates, but to skinny down some points.
Online lenders have a completely different model than brick and mortar companies. First, to successfully navigate their process, the consumer must have above average knowledge how the industry works, as well as, a tenacious and consistent grip on daily follow up. Few consumers fall into this category. Reason persistence needed: this is assembly line mortgage lending. One employee reviews application, passes it down for paperwork to go out, someone else collects it, and on it goes. You may never talk to the same person twice. This particular model could care less about future referrals from Realtor's or consumers.
Each lender prices individually. Some do favor (or charge more) for certain zip codes, property types and loan amount. Rarely (publically) acknowledged is Fannie's pricing matrix will actually have a better rate for a 90% LTV loan than an 80% loan. Why? An insured loan is of greater value to the lender than an 80% LTV uninsured loan. But, that doesn't mean all lenders will price that way. Every lender is unique in the way they set rates. And if they must offer the lowest rate to get loans, there almost always is a trade-off. Just make sure you can afford their discount. Research their reviews and complaints. There's a reason the Realtors would not be happy about an online choice. Had you presented a letter at time of offer, chances are the the offer would have been declined. If you are under contract, kind of late for them to object, but, if you hit a problem, chances are they may cut you loose, where if it were a known lender, they would hang in there, depending upon the loan officer's (and the company) reputation.
Whatever you do, do not input your SSN, which could result in dozens of credit pulls. The tighter the timeline, the more challenging the process. Also, an online lendr is not going to coach you daily on market conditions, ie, review what happened in the market yesterday, this morning.....is now the best time to lock or should you wait a day? If you wait 3 days, will a shorter term lock serve you better and so on.
None of them take your employment into consideration. I have about a 795 FICO, and 40% down...it is a total pimp and ***** party. 3.75% 15 year fixed.....maybe if you have five years with the department of bullcrap....but I can't even get an Alt A type loan. I will pay cash, and pay less. Lending tree is the same pile of crap.
Lending Tree is not going to be your best bet for ALt-A lending (now known as NonQM by industry people) They are for rate shoppers who fit the traditional borrower with full income and job documentation.
Lending Tree is not going to be your best bet for ALt-A lending (now known as NonQM by industry people) They are for rate shoppers who fit the traditional borrower with full income and job documentation.
But, they do t make that clear, at all, while getting a lot of information from you, and having a lot of really worthless individuals send you robotic emails, or worse. Wells Fargo seems to lead the pack. Thanks for the new terminology, though. I used credit on my first four homes, sold in 2005, and have paid cash since..always getting better deals.
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