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Old 04-19-2009, 04:34 PM
 
196 posts, read 579,310 times
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Hi

I am a first time home buyer and I am trying to not get ripped off by a bank on my mortgage rate.

I am looking to borrow max 160k for a Condo. So 200k with 40k DP. I would be putting 20% down. My credit is mid to high 700s.

I was pre-approved by Coldwell Banker, as I was recommended by my real estate agent to do that. My real estate agent is also with Coldwell Banker. They quoted me at 5.2%. Then I went to HSBC and the guy quoted me with 4.75%. He did not run my credit or anything I told him what my score was.

I dont have a property yet so I cant lock in a rate. I asked the Coldwell banker person why I was quoted so high and she said it was because I am getting a condo and would have to put 25% down to get a better rate. I asked the HSBC guy about this and he said it is BS.

I'll probably go with HSBC but what questions should I ask, does my lawyer look into the mortgage bank contract?
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Old 04-19-2009, 05:55 PM
 
Location: Columbia, SC
9,719 posts, read 19,110,607 times
Reputation: 7942
Quote:
Originally Posted by gus030 View Post
Hi

I am a first time home buyer and I am trying to not get ripped off by a bank on my mortgage rate.

I am looking to borrow max 160k for a Condo. So 200k with 40k DP. I would be putting 20% down. My credit is mid to high 700s.

I was pre-approved by Coldwell Banker, as I was recommended by my real estate agent to do that. My real estate agent is also with Coldwell Banker. They quoted me at 5.2%. Then I went to HSBC and the guy quoted me with 4.75%. He did not run my credit or anything I told him what my score was.

I dont have a property yet so I cant lock in a rate. I asked the Coldwell banker person why I was quoted so high and she said it was because I am getting a condo and would have to put 25% down to get a better rate. I asked the HSBC guy about this and he said it is BS.

I'll probably go with HSBC but what questions should I ask, does my lawyer look into the mortgage bank contract?
Make sure that the 5.2% isn't a capped rate protection plan and you'd get a lower rate if they locked at current market rates b/c CB Mortgage does offer that. (really PHH Mortgage that ERA/C21 also use)

Ask for a good faith estimate so you can compare rates and closing cost. Go over them with your Realtor if you'd like an explanation and help making the right financial course (assuming your agent has pretty good financing knowledge).
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