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Old 10-07-2009, 07:08 AM
 
Location: Plano, Texas
1,675 posts, read 6,652,507 times
Reputation: 694

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Quote:
Originally Posted by Omaha Rocks View Post
Go talk to a mortgage loan officer at a local bank. Try to find a man/woman who is at least 40-years old, because those are the ones who have been down the road and understand the industry.

The local mortgage loan officer will be able to tell you exactly what the pros and cons of your situation are. If you qualify for a purchase, they'll tell you how much they'll loan you.

If you're not particularly happy with one bank, be sure to go to another one or two.


Do NOT go through some Mortgage Brokerage. They are suspect, at best - especially the online ones.
Your last line regarding dont go through a Mortgage Brokerage as they are suspect is ridiculous and shows how little you know. Mortgage brokers can get consumers much better terms than the local bank. Granted there are some bad mortgage brokers, but guess what? There are also many suspect loan officers at banks.

Additionally, a huge change in the mortgage industry is the way appraisals are ordered called the Home Valuation Code of Conduct. This law came about because officals at a bank pressured appraisers to hit certain values. Not mortgage brokers pressuring but a BANK.
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Old 10-07-2009, 09:10 AM
 
Location: I think my user name clarifies that.
8,292 posts, read 24,338,624 times
Reputation: 3901
Quote:
Originally Posted by VictorBurek View Post
Your last line regarding dont go through a Mortgage Brokerage as they are suspect is ridiculous and shows how little you know. Mortgage brokers can get consumers much better terms than the local bank. Granted there are some bad mortgage brokers, but guess what? There are also many suspect loan officers at banks.
Your being offended about my negative view of mortgage brokers doesn't change the facts. I have bought and sold many houses, and I know EXACTLY what I'm talking about.

The 25-year old mortgage broker - sitting in the cubicle of the office suite at the end of the strip mall - is one of the single worst people a young guy like the OP can possibly talk to.

Here's one of the problems: Said mortgage broker not only doesn't know what he's talking about, he's pushing (especially) young people into horrible mortgage situations. He's the guy pushing people to borrow more than they should, take out ARMs and all manner of other ill-advised loans. He's the guy that's telling a young couple that, though they only have a $45,000 combined annual income, they really can afford a $275,000 house. "We just have to be creative."

And what's worse than a local mortgage broker is the online mortgage brokers.



As I advised earlier: Go to the local bank.
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Old 10-07-2009, 09:20 AM
 
Location: Plano, Texas
1,675 posts, read 6,652,507 times
Reputation: 694
Quote:
Originally Posted by Omaha Rocks View Post
Your being offended about my negative view of mortgage brokers doesn't change the facts. I have bought and sold many houses, and I know EXACTLY what I'm talking about.

The 25-year old mortgage broker - sitting in the cubicle of the office suite at the end of the strip mall - is one of the single worst people a young guy like the OP can possibly talk to.

Here's one of the problems: Said mortgage broker not only doesn't know what he's talking about, he's pushing (especially) young people into horrible mortgage situations. He's the guy pushing people to borrow more than they should, take out ARMs and all manner of other ill-advised loans. He's the guy that's telling a young couple that, though they only have a $45,000 combined annual income, they really can afford a $275,000 house. "We just have to be creative."

And what's worse than a local mortgage broker is the online mortgage brokers.



As I advised earlier: Go to the local bank.
So all mortgage brokers are 25 year old guys sitting in a cubicle in a office suite of a strip mall? Wow, you do know what you are talking about. I also learned from you now that all brokers are he's. You do know what you are talking about. That is for sure.

Additionally, you didnt mention in your first post that you have bought and sold many homes. That changes everything. You must know. Surely if one is bad they are all bad. That is true with everything. But wait, some people that post give bad advice, so does that mean everyone that posts gives bad advice. Now i am worried. You have me confused now.

I used to judge a person based on that person and never cast a net over a entire group of people. I was raised by my parents to never do that. You have opened my eyes. If one is bad, they are all bad. Got it! Thanks for changing my view and i am sure that view will make the world a better place.
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Old 10-07-2009, 09:26 AM
 
28,461 posts, read 76,240,392 times
Reputation: 18535
Default Could not be more wrong...

Quote:
Originally Posted by Omaha Rocks View Post
Your being offended about my negative view of mortgage brokers doesn't change the facts. I have bought and sold many houses, and I know EXACTLY what I'm talking about.

The 25-year old mortgage broker - sitting in the cubicle of the office suite at the end of the strip mall - is one of the single worst people a young guy like the OP can possibly talk to.

Here's one of the problems: Said mortgage broker not only doesn't know what he's talking about, he's pushing (especially) young people into horrible mortgage situations. He's the guy pushing people to borrow more than they should, take out ARMs and all manner of other ill-advised loans. He's the guy that's telling a young couple that, though they only have a $45,000 combined annual income, they really can afford a $275,000 house. "We just have to be creative."

And what's worse than a local mortgage broker is the online mortgage brokers.



As I advised earlier: Go to the local bank.

If you were posting this 3 years ago you would have been dead on. Even 18 months ago you were closer to accurate.

Now, with so many sources of funding GONE, there just are very very very few mortgage brokers left. And the remaining ones, regardless if their office is in a nice low rent strip mall or some snazzy downtown building with lawyers, can and do routinely help people get terms on mortgages that are better than the local banks are capable of.

The reason is simple -- the sources of funding that go through mortgage brokers have very very low overhead. They happily will give better terms than the places that have to pay high rent and advertising and have overly bureaucratic mechanisms that slow the process.

I am not saying EVERY mortgage broker will always beat every traditional bank, but to EXCLUDE mortgage brokers from your selection process , based on incorrect info is not prudent...
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Old 10-07-2009, 09:27 PM
 
Location: I think my user name clarifies that.
8,292 posts, read 24,338,624 times
Reputation: 3901
Quote:
Originally Posted by VictorBurek View Post
So all mortgage brokers are 25 year old guys sitting in a cubicle in a office suite of a strip mall? Wow, you do know what you are talking about. I also learned from you now that all brokers are he's. You do know what you are talking about. That is for sure.

Additionally, you didnt mention in your first post that you have bought and sold many homes. That changes everything. You must know. Surely if one is bad they are all bad. That is true with everything. But wait, some people that post give bad advice, so does that mean everyone that posts gives bad advice. Now i am worried. You have me confused now.

I used to judge a person based on that person and never cast a net over a entire group of people. I was raised by my parents to never do that. You have opened my eyes. If one is bad, they are all bad. Got it! Thanks for changing my view and i am sure that view will make the world a better place.
Yeah, I'd strongly suggest you go to a typical 25-year old mortgage broker - a man or woman, (though I didn't feel it necessary to mention both genders). Buy a home that is at least 3x what you can afford because, after all, said 25-year old broker advised it, and I'm pretty sure he/she knows best. And be sure you make no more than a 5% down-payment, because said broker says that's a good idea. Don't ask pesky little questions like, "What is PMI?"

And what's more, roll all your closing costs into the monthly payments, spreading them out over 30 years. That way you can "get in cheap." After all, how else is said mortgage broker going to absolutely ********* over with closing costs that are a full 4x the amount of closing costs at a local bank. And what's more, don't bother noticing the fact that, because you're paying for the closing costs over 30 years, your closing costs aren't $9,000 but end up being - in reality - closer to $30,000. After all, said mortgage broker told you it'd be a good idea.

And hey, as long as you're taking the genius advice of the 25-year old mortgage broker, be sure to take out an ARM, and don't read the fine print. That way, when you move beyond 3 years, your mortgage payments will likely more than double. But you can't get out from under your mortgage loan because you're now upside-down in the debt-to-asset ratio.

And what's more, when you realize you've been absolutely screwed blind in your mortgage loan, go talk to said mortgage broker about it. But guess what?!?! He/she will no longer be there. Shop is closed, facade company is defunk, and you're just flat-out screwed.



On the other hand, you can do what I did with the last house I bought. Go to a local bank. Lock in a 5.125% fixed-interest mortgage loan over 15 year term, with no points. Pay less than $2,000 total closing costs on a $150,000 home. Everything is locked down and in writing.


Your choice.
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Old 10-08-2009, 07:02 AM
 
Location: Plano, Texas
1,675 posts, read 6,652,507 times
Reputation: 694
Your hatred toward this mythical mortgage broker is troubling. Seek help.

Regarding the last house you bought, if you would have paid a point, your rate would be lower which would have saved you thousands of dollars over the life of the loan. But i am sure your loan officer at the bank explained that to you. But you have bought and sold many homes, surprised you didnt know that.
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Old 10-08-2009, 08:15 AM
 
Location: I think my user name clarifies that.
8,292 posts, read 24,338,624 times
Reputation: 3901
Quote:
Originally Posted by VictorBurek View Post
Your hatred toward this mythical mortgage broker is troubling. Seek help.

Regarding the last house you bought, if you would have paid a point, your rate would be lower which would have saved you thousands of dollars over the life of the loan. But i am sure your loan officer at the bank explained that to you. But you have bought and sold many homes, surprised you didnt know that.
There's no defense for what Mortgage Brokerages did. That's why they are, largely, an entity of the past. And that's not because of me, but because people began to open their eyes to what was actually going on. Sorry it means that you're now out of a job.

And no, actually you're wrong about paying down the points. Maybe on a 30-year mortgage - depending on the price of the buy-down - but not on a 15 year mortgage. It is utterly stupid to pay $1500 for a 1/4 of 1% buy-down. Nice try though.
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Old 10-08-2009, 08:59 AM
 
Location: Visitation between Wal-Mart & Home Depot
8,308 posts, read 36,212,057 times
Reputation: 7130
Quote:
Originally Posted by Omaha Rocks View Post
Your being offended about my negative view of mortgage brokers doesn't change the facts. I have bought and sold many houses, and I know EXACTLY what I'm talking about.

The 25-year old mortgage broker - sitting in the cubicle of the office suite at the end of the strip mall - is one of the single worst people a young guy like the OP can possibly talk to.

Here's one of the problems: Said mortgage broker not only doesn't know what he's talking about, he's pushing (especially) young people into horrible mortgage situations. He's the guy pushing people to borrow more than they should, take out ARMs and all manner of other ill-advised loans. He's the guy that's telling a young couple that, though they only have a $45,000 combined annual income, they really can afford a $275,000 house. "We just have to be creative."

And what's worse than a local mortgage broker is the online mortgage brokers.



As I advised earlier: Go to the local bank.
Mine is certainly anecdotal, but I had quite the opposite experience. My wife and I bought our first house when I was 28. We shopped around and examined a lot of options. At Bank of America, the loan officer we spoke to questioned if we were sure we didn't want to spend more on a house since we could get approved for about double the price range we had decided on. Another bank went to some great lengths to explain that an ARM was probably a better option.

A very small mortgage company was what we settled on. We were serviced by a 27 year old gal who, for whatever reason, actually had our interests in mind. They dealt with us in good faith and the experience was very satisfactory. Closing costs were higher than they would have been at a giant bank, but not prohibitively so.

I'm sure some of the smaller banks that we looked at would have been similarly competent, but my impression was that a big bank is looking to hit homeruns off of people who have not done their homework.
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Old 10-08-2009, 09:10 AM
 
Location: I think my user name clarifies that.
8,292 posts, read 24,338,624 times
Reputation: 3901
Quote:
Originally Posted by jimboburnsy View Post
Mine is certainly anecdotal, but I had quite the opposite experience. My wife and I bought our first house when I was 28. We shopped around and examined a lot of options. At Bank of America, the loan officer we spoke to questioned if we were sure we didn't want to spend more on a house since we could get approved for about double the price range we had decided on. Another bank went to some great lengths to explain that an ARM was probably a better option.

A very small mortgage company was what we settled on. We were serviced by a 27 year old gal who, for whatever reason, actually had our interests in mind. They dealt with us in good faith and the experience was very satisfactory. Closing costs were higher than they would have been at a giant bank, but not prohibitively so.

I'm sure some of the smaller banks that we looked at would have been similarly competent, but my impression was that a big bank is looking to hit homeruns off of people who have not done their homework.
That's a very good point - and I'm glad that it worked out so well for you.

But note that you went to Bank of America. They are - along with several other bloated corporations - a sad example of everything a bank should not be. They're not local, and they're basically not a bank.

That's why I strongly suggested to the OP that he go to a local bank.


For the record, one bank I went to was a local branch of USBank. I tried to do business with the branch manager and, frankly, she was an idiot. It was obvious that her hands were tied and that she was nothing but a local puppet of a giant corporation. This is the same bank that wanted to give my 20-year old son a loan to buy a new $25,000 VW Jetta, but refused to give him a $2,500 loan to buy a good used one.

Also, their mortgage loan rates were a full 2% higher than those at First National Bank of Omaha, and they refused to even consider negotiating.


Local is almost always a far better choice.
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Old 10-08-2009, 09:25 AM
 
Location: Plano, Texas
1,675 posts, read 6,652,507 times
Reputation: 694
Quote:
Originally Posted by Omaha Rocks View Post
There's no defense for what Mortgage Brokerages did. That's why they are, largely, an entity of the past. And that's not because of me, but because people began to open their eyes to what was actually going on. Sorry it means that you're now out of a job.

And no, actually you're wrong about paying down the points. Maybe on a 30-year mortgage - depending on the price of the buy-down - but not on a 15 year mortgage. It is utterly stupid to pay $1500 for a 1/4 of 1% buy-down. Nice try though.
Lets see how stupid. $1500 discount point on a purchase loan is tax deductible. Not sure of your tax bracket but lets say it is 25%. So, the true cost of the discount point is $1500 less the deduction which makes the true cost $1125. On $150,000, the .25% lower rate would save you $375 per year in interest which means you would break even in 3 years. Wow, looks like it makes sense. Still surprised after all the homes you have bought and sold you were yet to grasp this concept. next time work with a professional broker that can help you better understand.
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