When getting a mortgate loan which do you suggest, a local bank or one of the mortgages places online?

For example Lending Tree?

Hi - you have some good answers, but the main reason people go to a mortgage broker, is a Bank has limited programs, and harder to get if you have any blimishes on your credit.

Please do not get confused - ok! A Mortgage Broker can and does underwrite for many other company's ( I underwrite for 150 companies). And deal with major banks on the wholesale side, where the underwriting is more lient and pricing is sometimes better than a banks.

Why use a broker? As I mentioned, a broker underwrites for many company's so they (I) only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true.

I tried lending tree. Got a bunch of crap offers from shady, never heard of mortgage lenders.

I went to a local bank (Capitol Federal) and got a good offer at a competitive rate. By the way, I also tried a local Bank of America. They have horrible rates. Stay away from them.

One other important thing, if you have to close on a tight schedule, do you want to be FEDEX'ing your papers? Or do you want the convenience of being able to drive down to the bank and work out the papers in person?

local banks I try leanding tree it was a joke

I am a loan officer myself. I can help you.

I prefer a real place. A mortgage is really important and I prefer not to do that online.

Well, i would use a local bank/mortgage agent. They usually have the same( sometimes more ) resources that be able to find the best fit (not necessary rate) for your profile.

you can use a mortgage broker, who does the searching for you

Local Bank! I saved $1,600 in miscellaneous broker fees by doing so.

It depends on your needs. If you have a low credit score or if you're looking for an "exotic" loan then you'd probably be better off speaking to a mortgage broker or trying your luck online. They usually have access to different types of loan programs and can find one to fit your needs.

If your credit is ok and you're not looking for a special type of loan you might be better off speaking to a loan officer at your local bank. I've found that banks tend to charge lower fees and their rates are usually competitive.

Shop, shop, shop! Ten years ago, I'd have said bank, unequivoally. Now, mortgage companies (there's one in your town) do a pretty good job. Online, I have no experience.

Remember that your local bank is just going to sell the mortgage to a mortgage company as fast as they can, anyway, so they've become a middleman - you can save money going straight to the source.

Try countrywide. That is a who I have mine through. Got a great rate 1 percent for 5 years. Can't beat that.

I like getting mine online. I should tell you that I am a mortgage broker. From what I have seen getting your mortgage online will in most cases get you the best deal because of the competition.

Matt
http://www.diversifiedlender.com/

Shop both. Your local bank probably won't help you if you have blemished credit and/or issues with income. Mortgage brokers/lenders will have access to a wider variety of loan programs like some of the "exotic" loans mentioned by other posters here. Just make sure that the loan officer you speak to is knowledgeable and experienced. Find someone you trust and who explains everything so you're not left in the dark. Or call me...

Rick Lanicek
www.primelendingonline.com

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.014
Copyright (c) 2011 Financial Crisis Tuesday, May 29, 2012 - Terms of use - Privacy Policy