Current Events > Homeowners, where did you get your mortgage? big bank? local bank? credit union?

(+) Yeah! (+)

mortgage broker?

im trying to set myself up for success by having relationships with the Banks or CU i hopefully get mortgages with in the future.

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i was incentivized to use the builder's lender

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My mortgage company has switched like 5 times since I bought the place a little over 4 years ago. Don't waste your time trying to develop relationships with them
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Initially through my mortgage broker but it was transferred to a big bank shortly after

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WaterLink posted...

My mortgage company has switched like 5 times since I bought the place a little over 4 years ago. Don't waste your time trying to develop relationships with them

this is a good point
these things change hands a lot
and the only relationship your bank really cares about is how much money do you have in the bank

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WaterLink posted...

My mortgage company has switched like 5 times since I bought the place a little over 4 years ago. Don't waste your time trying to develop relationships with them

yeah i read online that they'll definite sell your loan to someone else

but isn't it useful in terms of getting a good rate/fees?

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_BlueMonk posted...

but isn't it useful in terms of getting a good rate/fees?

I mean definitely do your research when you try to get the loan initially, but being buddy buddy with the loan officer isn't going to change your credit or the industry interest rates.

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WaterLink posted...

I mean definitely do your research when you try to get the loan initially, but being buddy buddy with the loan officer isn't going to change your credit or the industry interest rates.

oh haha i didn't mean relationship like best friends. i mean for some CUs they want you to be a member first. being an established member will definitely help

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I've actually gone through 3 different lenders in 3 years. Refinanced from 4.5 to 3.6 to 2.8 .

Had a credit union then a bank and now just a "mortgage company".

I started at Navy Federal which was great but then they kind of sucked on the refinance process so I switched.

I just went with one that my realtor recommended. She's cool af and hadn't steered me wrong in any aspect of the process. I think they immediately passed it off to a bigger place.

Also as a heads, these places treat your time like you aren't doing anything during the day. The amount of "Hey, can you sign this paperwork at 10:30am on Tuesday" requests were frustrating. Apparently, most people buying homes don't work or something

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A couple of my close friends are loan officers, I use them

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Po boy's mortgage shack

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Mortgage broker
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Didnt you just declare bankruptcy

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_BlueMonk posted...

yeah i read online that they'll definite sell your loan to someone else

but isn't it useful in terms of getting a good rate/fees?

Yes. The fact that they sell the loan is mostly a non issue.

The only issue I had was that I hit 80% early, and Bernie Mac wouldn't let me drop the PMI without an appraisal. My original bank would have. But I deal directly with my original bank on any issue.

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Morker broker is always better.they sold it to a mid size bank tho.

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I used a mortgage broker. They got us a much better deal than we could find for ourselves. Increased our buying power significantly.

We're actually in the process of shopping for our first home.

Since I'm in the military, I was able to qualify for a VA Loan through Veteran's United.

important distinction:

your loan being "passed off" is actually just the right to process (collect payments, run escrow) being sold; the actual originated loan itself is not sold to the second entity. the loan itself is sold on the public bond market as part of a FNMA 3.5 or 3.0 bond, depending on your credit score.

so what matters is where you originate your loan; your goal should be to get it from a small direct lender that takes as little off the top as possible.

rather than using a broker, I recommend people do the research themselves. you can see what these bonds trade for. they determine what rate you can get, if you have excellent credit. this is all brokers are doing; whatever they save you, they're taking back in their broker fees. any loan officer can tell you in a second what their current daily prime zero-points rate is, and what they charge in origination fees. that's literally all you need to know from them. when i was refinancing, my loan officer would text me the rate he could offer that day while we were waiting to lock. it changes daily, at every lender, but a snapshot of what each can do on a given day is usually 'good enough', at least for you to whittle down to "these five lenders that all have almost exactly the same rates because they're taking so little for themselves."

to shop around, ask direct lenders for a 'zero points' loan, and find out what origination fees they charge. that will let you determine the actual price of a loan with them versus others. some banks refuse to offer such loans and insist you buy X points to use the rate they're offering--these banks are deliberately trying to obfuscate their price and make it harder to compare, best practice is to simply not use them. at the current low rates, there's not too much reason to pay points now to lower your rate further anyway; it's already below the rate of inflation and the return of money paid now to push the rate an eighth of a percent lower is not excellent.

whatever you do, don't use a big bank with national name recognition to originate your loan: they deliberately overcharge because they know lazy people will just come to them. they overcharge both by charging points AND raising the rate above the prime rate AND charging a separate origination fee, then selling that loan at a premium to the bond market, taking the extra as profit for themselves.

usually the difference from one direct lender to another is not huge, so using any direct lender your realtor directs you to is not the worst thing to do. they're not obligated to act in your best interest, but you're not getting fucked over unless they send you to Bank of America.

if you want a really quick check on what direct lenders are charging, provident.com lets you directly quote the costs for a mortgage with them, without requiring you do anything. it's worth the 30 seconds to check this so you can get a sanity check on what your direct lender is offering; provident's service sucks and it is hard to actually close a loan with them because of this, so I don't recommend them, but any zero-points loan that is at a rate close to theirs without a massive origination fee is probably not taking too much as profit.

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WaterLink posted...

My mortgage company has switched like 5 times since I bought the place a little over 4 years ago. Don't waste your time trying to develop relationships with them

That. For my second house I went through a friend who works for a mortgage lender, which made the process easier but even before I made my first payment I had already gotten info that my loan was sold to another company.
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Big banks will charge you more. Im an Army veteran, and I went to Navy Federal Credit Union.

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Im going to pretend not to be a 28 year old whos high school failed him.

Whats a mortgage, exactly?

SoggyBottomBoy posted...

Im going to pretend not to be a 28 year old whos high school failed him.

Whats a mortgage, exactly?

When you buy a house, but take out a 15-30 year loan to do so. Most people dont have the cash to buy a house in full.

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Yall Tc lied for years about his job and claims to have recently declared bankruptcy. Youre wasting your time giving him advice

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Pepys Monster posted...

When you buy a house, but take out a 15-30 year loan to do so. Most people dont have the cash to buy a house in full.

So I better be damn sure of where I want to not raise kids, huh?

SoggyBottomBoy posted...

Im going to pretend not to be a 28 year old whos high school failed him.

Whats a mortgage, exactly?

it's a bond that the loan originator helps you sell on the open market (for a price) that loans you the money to buy a home

you can view the bank you take the loan from similarly to the entities that help a company's stock IPO go live on the stock exchanges. except with mortgages they package dozens of mortgages from borrowers with credit ratings similar to yours into the bond security that is sold, treating all as basically the same. what the bond market will accept as an interest rate is what determines the rate you pay.

they're not actually lending you their money, they're just facilitating the process for you to get a loan from the bond market, which is made up of both the government entity fannie mae, and a horde of individual bond investors

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SoggyBottomBoy posted...

So I better be damn sure of where I want to not raise kids, huh?

Not really, you can sell your house whenever you want, you aren't stuck there for the whole 15 to 30 years of the loan

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Shezarr posted...

Yall Tc lied for years about his job and claims to have recently declared bankruptcy. Youre wasting your time giving him advice

well this changes everything i am going back to delete my posts

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Weird gimmick tho

Ive used Guaranteed Rate, SoFi, and a local bank most recently. GR worked out great in my area, but your milage might vary depending on location.

Never, never, ever use Chase. Worst experience ever.


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