Moving to FL - What are pros and cons of having a lender in Raleigh or FL? (loan officer, pre-approved)

[Sam2008]

I'm planning to sell in Raleigh, get the equity and use as down payment to buy in the Fort Lauderdale area. I understand that having a realtor in the area where you want to buy (FL) is a must because the agent knows the area, to say the least. This is a no-brainer.

1) I want to get pre-approved (to make sure I can buy) before I sell. So, from a lending standpoint, I'm not sure if the place where the lender is located matters. Should I find one in FL? What are pros and cons?

2) Plus, should I go to a credit union, a commercial bank, or a mortgage broker I don't know? Or should I try my current lenders which know me?

FYI, I did an 80-20 with a mortgage lender and a commercial bank six years ago. My credit score is 670. So, a lender would see me as an "A-" or "B" type of client in a scale from "A to D" where A would be prime lending and C or D would have to work much harder to get approved. Given the situation, to whom should I turn?

I will appreciate your insights.

Sam2008

[NedB]

Because of state-level banking and mortgage regulations, I believe the lender needs to be licensed/registered to do business in the state you intend to purchase the property to be mortgaged. They don't necessarily need to be based there.

I am currently in Connecticut and moving to Raleigh in the next couple months. My bank is also in North Carolina. I did all the paperwork through my branch here in Connecticut to get a mortage pre-approval for a home in North Carolina.

[adlnc07]

I used my Virginia lender to buy a house in NC two years ago with no problems - and am doing the same thing again this month. I don't know about her particular licenses, but the company she works for does have offices in NC. I'm sticking with her because she has done right by me on the last two transactions (and they also keep something like 95% of the loans they write, rather than resell them). I see no problem with you meeting with a lender here in NC for a transaction that will eventually happen in FL.

As far as choosing a lender - you probably want to talk to at least two lenders/brokers - maybe one at the bank you do business with, and get some recommendations from friends/coworkers/etc. In the past I've received vastly different quotes for rates & closing costs, so it's definitely worth comparing offerings from at least two people.

Good luck!

[autumngal]

Moved from the NC forums.

[renriq02]

the lender/loan officer needs to be licensed in FL.

You may have to look at a FHA/VA mortgage.
Most of FL is in a declining market, and you will need to put around 10% down. With FHA you can put down 2.25% down.

With your credit score, you will have a really high rate on conventional loans.

[EdatGenesis]

Truth be told, the location of your lender doesn't really matter as long as they a legally licensed to do business in that State ...

Banks, and Credit Unions are just as likely (maybe more) to throw you under a bus as the "dreaded" mortgage broker ..

Regardless of whom you choose, realize you're dealing with an in house loan officer who's paid on commission also .. Credit Unions often give better deals because they are smaller, and willing to work harder for your business - Big Banks on the other hand usually don't care..You're a number to them

Mortgage brokers work harder also as you are THEIR client & getting that deal closed means a paycheck for them & their families

In spite of all the "hoopla" ..No one has anything "special" or different than anyone else - Rates are rates are rates..PERIOD

It really all breaks down to who gives you the best deal, and service