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Who do I use for home loan?

Discussion in 'The Lounge' started by fordeater, Jan 23, 2005.

  1. fordeater

    fordeater 1/2 ton status Premium Member

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    Me and the wife are trying to buy a home and were just wondering who were the best lenders. Just trying to find out who to use, and who not to use. We are first time home buyers, so we are trying to find a zero down if all possible. Any info and tips would be appreciated.

    thanks
    Doug
     
  2. Storm Trooper

    Storm Trooper 1/2 ton status GMOTM Winner

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    Might be best to talk to your bank 1st to see what they say.
    Most lenders end up selling your mortgage to someone else after a few years anyway.
     
  3. mrk5

    mrk5 The Sticker Guy Moderator Vendor GMOTM Winner Author

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    Check to see if your state has any first time home owner programs.


    We bought our home as first time home buyers, and we were able to go through Colorado Housing Finance Authority. I can't remember all the benefits, but it was very useful and they never sell off their loans. I also have the VA Home Loan guarantee, so it is hard for me to remember which program did what. But your state's program may be different anyways.

    On another note, I always like to find out how many of their loans they do sell off. If I'm going to go to all the trouble of picking a financer, I want to make sure it stays with them.
     
  4. Goober

    Goober 1/2 ton status

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    Go talk to your bank first, they might have a great deal for their customers.


    Then go talk to a Mortgage Broker and let them do all the work for you. They have access to just about everyone who's willing to loan money and they (sometimes) get better deals for you.

    Be careful when working with a Real Estate agent. Some of them are really great and will get you the best deal around ......... but most of them (that I've met) are dirty bastards that will steal money from your grandma if given a chance.
     
  5. cbbr

    cbbr 1 ton status GMOTM Winner

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    Try your local bank first. It never hurts to establish a business relationship with them. After you get a quote from them, shop it around and see if they can match the best deal that you find.

    As far as banks selling loans, they pretty much all do it.
     
  6. fordeater

    fordeater 1/2 ton status Premium Member

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    The only problem with my bank is that they charge like 80 bucks for an application fee. I saw that and decided not to even bother with them.
     
  7. cbbr

    cbbr 1 ton status GMOTM Winner

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    Ouch. They should have some idea of going rates, but for $80 I would have to look somewhere else to get started.

    Might as well get used to getting hosed in the homebuying process - no way around it in my experiance.
     
  8. DPI

    DPI 1/2 ton status

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    A bank would be the last place I would look. They usually charge the highest rates and most closing costs.
    Check the bankrate.com site. I used it when we built our house. You can compare rates and points of many lenders.

    http://www.bankrate.com/brm/rate/mtg_ratehome.asp?web=brm&hABoutType=M&state=WA&prodtype=mtg&market=812%2C611&sort=7&mtg_n_loan=1&search_pg=1&no_comments=&product=1&points=6&submit=Search

    I sorted this based on the APR. You need to compare the "APR" this is your annual percentage rate and is the actual costs of your loan.

    If you notice, the "banks" in your area have the highest costs...

    If you have good credit, you should be able to have your way with the lender and command the best deal...



     
  9. cbbr

    cbbr 1 ton status GMOTM Winner

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    I checked all over and then made my local bank match the best deal that I found. They did it to keep the business and its nice to have someone local to bitch at when a problem crops up.
     
  10. DPI

    DPI 1/2 ton status

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    Knowledge is POWER.

    As long as you go into your bank prepared, I don't have a problem with it. But when people blindly walk in without doing their homework, a bank is more than happy to screw you.

    I ended up using Wells Fargo which I told myself I wouldn't do. The reason? They locked a rate in for 6 months (didn't charge me extra like every other institution wanted to do) and I ended up not paying ANY points... :D


     
  11. cbbr

    cbbr 1 ton status GMOTM Winner

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    Yeah, I agree completely. Do you rhomework first, and if the bank won't match whatever you come in with, be prepare to walk.
     
  12. bigyellowjimmy

    bigyellowjimmy 1/2 ton status

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    Shop around. Make sure you get a loan that doesnt charge an "origination fee" or points upfront. Dont worry, we still make $$$ on the backside :D Often Realtors know the best Mortgage lenders out there since they deal with them often. When shoping around get a copy of your credit scores from the first place and bring it around with you, otherwise each place will pull your score which lowers it. Whoever you choose will eventually have to pull it but at least it will only be pulled twice. Banks are normally the most expensive loans (in general) with the most overhead.


    FYI....when shoping around you will need the following info on hand.

    paystubs covering most recent months (30 days) earnings

    Last 2 yrs W-2's

    assets (last 2 months Bank statements, cking and savings and CD's, etc)

    liabilities (CC balances, car loan balances, student loan balances, etc)

    Dont forget when figuring up how much monthly payment you can afford to include Property taxes, Homeowners insurance and Mortgage insurance (since it sounds like you wish to finance all of your purchase price) Find out if you can drop the mortgage insurance without a fee when you pay down your loan to that point as well. Believe it or not some lenders charge you to drop it! Almost all lenders require you to request it dropped.

    Hope this helps, PM me with any questions
     
  13. 86kansask5

    86kansask5 1/2 ton status

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    Zero Down Help from USDA

    First, check you credit score! Use the credit check sites, make sure there is no mistakes on it against you. Also, if you have a car loan with a local bank thats in good standing, sometimes they don't report to credit. This can lower your score too. Anyway, know where you stand before you go to the bank.

    Second. If your looking for zero down, the U.S. Rural Development Program is a good place to go. www.rurdev.usda.gov/wa/sfh.tn
    Basicly, it helps people buy homes by getting 100% loan for you. There are a few catches. This is not a hand out. You just finance 100% of the loan. If you have any questions, pm me.
     
  14. big pappa b

    big pappa b 3/4 ton status

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    For our loan I went thru my realtor. I did the Zero down and had to pay no extra's. They actually had the best rate I could find. Another option might be the company you have vehicle insurance or renters insurance with. Most of my co-workers use USAA for insurance and they thought their rates would be cheaper but they were about .25% higher.
    We close on our house tomorrow in fact :D
     
  15. DPI

    DPI 1/2 ton status

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    I would try to eliminate the PMI if possible. PMI does not benefit you at all. This is charged by the lender to cover the investor if you fail on the note.

    Most places require 20% down (I think) to not charge for PMI. One way you can not be charged the PMI is to take out a 1st mortgage for 80% of the loan and a second mortgage for the 20%.

    PMI is a freakin joke and it is very expensive when that amount could be reducing your principle. That could be thousands of $ over the life of your loan.

    Definately ask you lender for ways to get around paying this scheme!!!

     
  16. big pappa b

    big pappa b 3/4 ton status

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    that's what we did too :D
     
  17. bigyellowjimmy

    bigyellowjimmy 1/2 ton status

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    This is a great way to eliminate PMI and its done all the time and we do it often. However not everyone is comfortable with having a 2nd right off the bat. Also the second will usually (almost always) carry a higher interest rate and if kept for 30 yrs it will become much more expensive than paying PMI for a yr and refi'ing and eliminating the PMI (this depends on how much appreciation your property is gaining though). Some mortgage companies dont charge fee's if you refi with them again......

    Definately you dont want to pay PMI for any longer than necessary or not at all.
     
  18. Thunder

    Thunder 3/4 ton status

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    Get your loan online its easy.

    http://www.gmacmortgage.com

    http://www.ditech.com

    I bought 2 houses and financed them totally online. Its easy and you dont have to talk to some bozo who is just tring to get deeper into your wallet.

    At least go to the learing center on the GMAC site and do some reading. Lotsa good info there for the first time buyer. They also have all the tools to find how much house you can afford, what your payments will be, and have all the latest and some of the best rates around.
     

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