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Wife and I are first-time home buyers, and we recently went to NCSECU for a pre-approval. I'll mention that we're about 7-8 months away from actively looking for homes; it was recommended to us that we get pre-approved now to give ourselves a good ballpark estimate of the size/price home we should be considering.
I have to say, I was pretty disappointed in our recent experience. We've been account holders there for almost 4 years now, and I’ve never had anything bad to say about them. I’m aware that SECU only has a few ARM products, and a 15 yr fixed rate product. We walked in and were basically expected to know which product we wanted – but that was the whole reason I went in to talk with them; we weren’t sure which type of mortgage would best suit us, based off of what we were prepared to put down, our incomes, debts, etc. The rep we spoke with immediately assumed we wanted a 100% financed 5-year ARM, and gave me somewhat of a confused look when I started telling her we were more interested in putting a considerable payment down. When I asked her to give us an estimate for a 15-year fixed rate, she mentioned that this type of mortgage "reduces your buying power" because of the higher monthly payments. Of course I understand this, and I also understand that a bank is making less $$ off of me with a much lower rate loan. In no way did she help us gain more insight into which product would be best for us. She ran our credit report, ASKED US WHAT WE THOUGHT WE’D BE COMFORTABLE PAYING, and gave us a result. I emphasize the former sentence because I blown away that SHE was asking US what we wanted to pay. Isn’t a pre-approval process supposed to tell me what I can reasonably expect to be loaned from a bank? The rep was very nice, but it just didn't seem like they had any interest in our request.
Someone tell me if I my expectations are off here. Maybe I expected way too much from this experience, and should have brought more knowledge to the meeting beforehand? Am I way off-base?
No, you're not way off base (though I don't know this is really a local topic). Sales people range from the very best to the very worst; don't blame SECU for a less than stellar experience. If they have the product or rates you're looking for give them another try.
Someone tell me if I my expectations are off here. Maybe I expected way too much from this experience, and should have brought more knowledge to the meeting beforehand? Am I way off-base?
There are plenty of free calculators that will help you determine how much house you can qualify to buy. Even the old 28%/36% will get you in the ballpark.
One advantage SECU offers is they offer loans above 80% LTV with no PMI, which can be a big help to a first-time buyer.
Did she ask how long you plan to be in the house? That can help determine if an ARM is an option.
Credit Unions are for the benefit of the members vs a bank which focuses on share holder return, and usually have better mortgage products. That said, you should also contact a mortgage broker for quotes.
FWIW, I would only go to NCSECU if you are looking for an ARM. When I went years ago they were pretty up front how they can offer good rates on ARMs but aren't as competitive when it comes to fixed rates. They simply don't have access to the numerous options for fixed rate products that a mortgage broker can explore for you.
I think perhaps I need to first determine what mortgage product we are most interested in, and then find those banks that offer such a product.
We weren't asked any questions about how long we planned to be in the house. BUT that's a good example of the type of conversation I was expecting to have
I think perhaps I need to first determine what mortgage product we are most interested in, and then find those banks that offer such a product.
If you are interested in a 30-year fixed, I'd start with a mortgage broker first. A local bank is likely to sell your loan anyway, so you won't have a long-term relationship with them. However, Branch Bank and Trust has on online pre-qualifying option.
If you are interested in a 30-year fixed, I'd start with a mortgage broker first. A local bank is likely to sell your loan anyway, so you won't have a long-term relationship with them.
She ran our credit report, ASKED US WHAT WE THOUGHT WE’D BE COMFORTABLE PAYING, and gave us a result. I emphasize the former sentence because I blown away that SHE was asking US what we wanted to pay. Isn’t a pre-approval process supposed to tell me what I can reasonably expect to be loaned from a bank?
It is possible that they were trying to get avoid approving you for more than you could afford, as opposed to giving you a blank check, or to manage your expectations. There are people that make the mistake of the bank telling them what they can afford.
I second the broker and suggest Corporate Investors Mortgage Company. Because rates are so low, you can get a 30 year fixed with no closing costs. Kind of a no brainier.
Rates are a little higher now, but I got a 30 year fixed, no cost at 3.75%.
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