U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-15-2009, 01:38 PM
 
Location: Sherwood, OR
666 posts, read 1,705,810 times
Reputation: 679

Advertisements

Quote:
Originally Posted by ufcrules1 View Post
The companies that are taking 60 days for the deal to close are the ones who are giving the better rates. Thats why its taking them longer.
I disagree. We close on a home in two weeks. Our mortgage is 30 year fixed 4.375% through Wells Fargo. They do not charge high fees and its taking 30 days. Our loan officer said he could probably do it quicker if needed.

I'm not sure what rates have to do with time to close.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 05-15-2009, 01:56 PM
 
Location: Richardson, TX
11,721 posts, read 18,638,318 times
Reputation: 30419
Quote:
Originally Posted by LeftCoastee View Post

I'm not sure what rates have to do with time to close.
Lower rates = more loans worked on by the same number of employees as when rates were higher.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2009, 02:08 PM
 
4,963 posts, read 12,564,860 times
Reputation: 3762
Quote:
Originally Posted by ufcrules1 View Post
You are talking about YOUR process. Not all banks are the same. Some are more stringent than others. You have a quick turn around process, thats great. You close your deals within 15 to 30 days and you probably head crack people with the rate and the fees you charge too.

The companies that are taking 60 days for the deal to close are the ones who are giving the better rates. Thats why its taking them longer.

When I went to re-finance one place told me it would take up to 60 days, and we did a 60 day lock at 4.375 with 1 point. The other place told me he could have me closed within 20 days but his rate was 4.5% with 1 point and his fees were $1500 higher.

I told him closing fast meant ZERO to me. Getting a good rate and FAIR fees meant the world to me. I'm going to be paying on it for 15+ years, the rate is what is the most important, not the speed in which your are closed.

I think the banks should be VERY stringent right now to ensure they weed out the idiots that try to buy more home than they can afford.
Actually when you are talking about conforming conventional mortgages they ARE all the same. While some investors investors (i.e. BOA, Chase, Wells, US Bank, etc.) may set requirements slightly above and beyond Fannie & Freddie basically they/we all have to abide by the same guidelines.

Refinances are very slow at the big lenders right now with the record low rates. The OP is doing a purchase. They usually get put ahead of refis as timeframe is very crucial.

Oh, and boy are we crackin' em over the head on rate and fees.
I work at a small community bank where many of our customers have been here for generations. You are not a # at our bank. As lenders the management actually makes sure we are not making too much money on our files. We make our money on portfolio loans not mortgage orgination (not that we don't profit on them but...). To boot we don't have anyone on commission, so there is no reason to gouge (sp?) or to push through loans that we think might have issues.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2009, 02:10 PM
 
28,461 posts, read 75,343,350 times
Reputation: 18520
Doubtful.

Wells Fargo has good systems. Everybody who has done business with them knows that. Some other lenders HAD systems just as good, but with the mergers layoffs too many lenders shot themselves in the foot.

The rates that ANY lender charges are largely a function of what investors are willing to pay for loans AND the amount of overhead costs that the lender / servicer can squeeze out of the process. If all lenders had equally low overhead there would be no variation.

If a lender has more people doing LESS work they would have HIGHER over head costs. The good firms can plug people into the system and get high quality/fast turn around AND are smart enough to 'furlough' workers when volume drops. It is sorta like running a nuclear power plant -- remember the skit on Saturday Night Live where they had Akroyd as Jimmy Carter tell the operator "just remember, you can never have too water in the reactor core"...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2009, 02:49 PM
 
Location: anywhere
1,730 posts, read 4,267,681 times
Reputation: 1865
Quote:
Originally Posted by ufcrules1 View Post
You are talking about YOUR process. Not all banks are the same. Some are more stringent than others. You have a quick turn around process, thats great. You close your deals within 15 to 30 days and you probably head crack people with the rate and the fees you charge too.

The companies that are taking 60 days for the deal to close are the ones who are giving the better rates. Thats why its taking them longer.

When I went to re-finance one place told me it would take up to 60 days, and we did a 60 day lock at 4.375 with 1 point. The other place told me he could have me closed within 20 days but his rate was 4.5% with 1 point and his fees were $1500 higher.

I told him closing fast meant ZERO to me. Getting a good rate and FAIR fees meant the world to me. I'm going to be paying on it for 15+ years, the rate is what is the most important, not the speed in which your are closed.

I think the banks should be VERY stringent right now to ensure they weed out the idiots that try to buy more home than they can afford.

No offense but what are you talking about? Are you even working in this industry? I am not saying that your beliefs don't make sense but as someone in a mortgage brokerage firm I can assure you that I have yet to see, even in these trying times, ANY lender, and I deal with dozens of them, that stringent and I am talking Fannie, Freddie, FHA & VA. Chet, Tim and Victor are all telling you the truth. The process maybe more difficult but if it ever comes to the terms you are describing than this industry will truly collapse.

Please don't think I am trying to be rude or anything because that is in no way my intention but I think you might be scaring potential borrowers lol with innacurate info although well intended.

To the OP, you will be fine and I wish you happy house hunting this weekend.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2009, 02:53 PM
 
Location: Sherwood, OR
666 posts, read 1,705,810 times
Reputation: 679
Quote:
Originally Posted by Debsi View Post
Lower rates = more loans worked on by the same number of employees as when rates were higher.
And they don't staff accordingly? You are saying loan officers have a higher work load now, in this economy, with low rates than they did with higher rates during the boom (refis notwithstanding)?

Wells Fargo had the lowest rate for my situation. Why were they able to do it just as quickly?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2009, 02:54 PM
 
Location: Castle Hills
1,133 posts, read 2,409,741 times
Reputation: 611
Quote:
Originally Posted by LeftCoastee View Post
I disagree. We close on a home in two weeks. Our mortgage is 30 year fixed 4.375% through Wells Fargo. They do not charge high fees and its taking 30 days. Our loan officer said he could probably do it quicker if needed.

I'm not sure what rates have to do with time to close.
You haven't even closed yet. Wait until after you close, then come back here and tell us how long it took from start to finish.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2009, 03:02 PM
 
Location: Sherwood, OR
666 posts, read 1,705,810 times
Reputation: 679
Quote:
Originally Posted by ufcrules1 View Post
You haven't even closed yet. Wait until after you close, then come back here and tell us how long it took from start to finish.
Don't you think that if there were any delays my loan officer would be telling me already? You think they are going to be 30 days late?

My loan officer has closed MANY recent, less attractive loans in 20 - 30 days. If he is going to be off in his closing date estimate by as much as you state, he wouldn't be in business. I will gladly post back here once we close.

It certainly doesn't seem like you have any qualifications to be giving the OP advice on how long it will take for his loan to close. Just because one of your potential lenders is taking 60 days, does NOT mean every other lender will take the same amount of time.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2009, 03:05 PM
 
30 posts, read 83,428 times
Reputation: 25
Quote:
Originally Posted by Kathleen1971 View Post
No offense but what are you talking about? Are you even working in this industry? I am not saying that your beliefs don't make sense but as someone in a mortgage brokerage firm I can assure you that I have yet to see, even in these trying times, ANY lender, and I deal with dozens of them, that stringent and I am talking Fannie, Freddie, FHA & VA. Chet, Tim and Victor are all telling you the truth. The process maybe more difficult but if it ever comes to the terms you are describing than this industry will truly collapse.

Please don't think I am trying to be rude or anything because that is in no way my intention but I think you might be scaring potential borrowers lol with innacurate info although well intended.

To the OP, you will be fine and I wish you happy house hunting this weekend.
Thanks Kathleen!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2009, 03:13 PM
 
Location: Castle Hills
1,133 posts, read 2,409,741 times
Reputation: 611
Quote:
Originally Posted by Kathleen1971 View Post
No offense but what are you talking about? Are you even working in this industry? I am not saying that your beliefs don't make sense but as someone in a mortgage brokerage firm I can assure you that I have yet to see, even in these trying times, ANY lender, and I deal with dozens of them, that stringent and I am talking Fannie, Freddie, FHA & VA. Chet, Tim and Victor are all telling you the truth. The process maybe more difficult but if it ever comes to the terms you are describing than this industry will truly collapse.

Please don't think I am trying to be rude or anything because that is in no way my intention but I think you might be scaring potential borrowers lol with innacurate info although well intended.

To the OP, you will be fine and I wish you happy house hunting this weekend.
Please tell me what part you are talking about when you refer to "Not that stringent". I'm not exactly sure what part you are talking about. Taking 60 days? Or asking for 2 years of tax returns, or asking for copies of your bank statements, etc. Which are you referring to?


Again, not all banks are stringent but some are right now. I originally went through BOA and it was 30 days and they did not require much at all. However, this time around I went through fifth 3rd bank and they were very stringent and took a very long time.

Some of the people who are posting here work for a very small bank that is not handling a large volume of customers. They typically have higher rates, and can close you in 15 to 30 days no problem.


This is a post by someone else on this forum. User name Alipie34... send the a PM and ask them how long they have been waiting and what all they have had to provide.

"i having been waiting to close on a house since 3/6/2009, i am still waiting. this is a fha loan. i've been jerked around by the mortgage broker and the lenders. i was asked to give bank recent bank statements every week. they had to be stamped by the bank and signed off on. i had to provide numerous letters on any money that was deposited to my account that was not direct deposited. i was told by my mortgage broker that i have been approved with conditions, i have not seen any paperwork and the lenders are still requested updates on my bank account. i am frustrated!"
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 07:24 PM.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top