I'm a novice at purchasing houses so I need some advice on how to get a good mortgage. Any tips on how to find a good rate with a legit company while not getting bent over (a tall task, I know)? Any particular lenders you'd recommend? I can put down 20% and have a good credit score. The last time I bought a house, which is the current house we live in, I just sort of let the real estate agent recommend a mortgage lender, but I want to be smarter this time. Thanks for any tips.
Find a good mortgage
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JHZR2
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how long ago was it when you bought last? Some states have "first time homebuyer" programs, which can be used if you havent purchased a home in 7 or 10 years and make under some income. If you fit, the deals are good, and the programs are well-structured.
One key thing is to have an agent that you trust. Then the agent may give their trusted lender, who may or may not give kickbacks, and who ought to historically be pretty good.
If youre only looking for a verification of what you should be able to borrow, anyone should be OK... sometimes it might be worth looking at who the seller is using for their mortgage, if theyre just moving local. Sometimes there is a benefit to working that together - that is what I did when I bought my home, and it went really smooth, and was very low cost.
Mortgage brokers ought to be hurting bigtime at this point. Besides the poor state of the industry, mortgage rates arent particularly low compared to the federal funds rate (havent checked the Libor rate, which mortgages tend to be based, but IIRC it has dropped too), due to the level of risk that is acceptable at this point in time. As a result, Id guess that you have a lot of chances to "interview" lenders and get a good feel.
Perhaps others have used an online service... at the end of the day, the reputable company with the lowest cost is the best one, I suppose... and a decent credit union is always a good choice.
Remember... fixed rate and 15 years only! Pay it biweekly, with it going towards P&I biweekly (not sitting idle).
JMH
One key thing is to have an agent that you trust. Then the agent may give their trusted lender, who may or may not give kickbacks, and who ought to historically be pretty good.
If youre only looking for a verification of what you should be able to borrow, anyone should be OK... sometimes it might be worth looking at who the seller is using for their mortgage, if theyre just moving local. Sometimes there is a benefit to working that together - that is what I did when I bought my home, and it went really smooth, and was very low cost.
Mortgage brokers ought to be hurting bigtime at this point. Besides the poor state of the industry, mortgage rates arent particularly low compared to the federal funds rate (havent checked the Libor rate, which mortgages tend to be based, but IIRC it has dropped too), due to the level of risk that is acceptable at this point in time. As a result, Id guess that you have a lot of chances to "interview" lenders and get a good feel.
Perhaps others have used an online service... at the end of the day, the reputable company with the lowest cost is the best one, I suppose... and a decent credit union is always a good choice.
Remember... fixed rate and 15 years only! Pay it biweekly, with it going towards P&I biweekly (not sitting idle).
JMH
I went to a broker to refinance that was recommended by two people who had used him. My original mortgage I was sort of coached by the real estate team, definitely NOT the way to go; rate was good but went for a ride for costs/fees.
Like an independent garage owner, the broker's business is dependent almost totally on reputation. People have 15, 20, 30 years to mull over whether they were served well....
It appears in the industry there is a rating that determines the likelihood a mortgage will be resold. He lined we up with a lender that has/had a very low reselling rate, indicating the lender will ACTUALLY assume the risk, instead of bundling it and throwing it over the fence. I'm sure "everything is different now"
Like an independent garage owner, the broker's business is dependent almost totally on reputation. People have 15, 20, 30 years to mull over whether they were served well....
It appears in the industry there is a rating that determines the likelihood a mortgage will be resold. He lined we up with a lender that has/had a very low reselling rate, indicating the lender will ACTUALLY assume the risk, instead of bundling it and throwing it over the fence. I'm sure "everything is different now"
PM sent.
Quicken Loans is who I went through.
My best advice is to ask the potential broker exactly what the costs are 1. upfront and 2. monthly, If they say they cant really break it down that way (many will say this) put them under the fire and say I'm only considering lenders that will break it down to the last nickel.
When I did this last time Quicken was very willing to do this and their rates and fees were very low. They are kinda like a walmart in that respect as they do so many that they profit on volume not on margin per transaction, especially if you are educated on the subject.
I wish I was in the market to buy a home, the deals out there right now are incredible. Make sure to offer a really low price, trust me the seller will consider it.
My best advice is to ask the potential broker exactly what the costs are 1. upfront and 2. monthly, If they say they cant really break it down that way (many will say this) put them under the fire and say I'm only considering lenders that will break it down to the last nickel.
When I did this last time Quicken was very willing to do this and their rates and fees were very low. They are kinda like a walmart in that respect as they do so many that they profit on volume not on margin per transaction, especially if you are educated on the subject.
I wish I was in the market to buy a home, the deals out there right now are incredible. Make sure to offer a really low price, trust me the seller will consider it.
Thanks for the advice. I'll also check out Quicken loans.
There are some great deals right now, but unfortunately my wife wants a house that is for sale by owner in an old established neighborhood where prices are fairly stable. I have found that these people are a bit more stubborn in how much they are willing to come down so I may have to wait it out. I don't think the market has bottomed yet so our timing is a bit off. I hate over paying for a house, but if the wife ain't happy, I ain't happy.
There are some great deals right now, but unfortunately my wife wants a house that is for sale by owner in an old established neighborhood where prices are fairly stable. I have found that these people are a bit more stubborn in how much they are willing to come down so I may have to wait it out. I don't think the market has bottomed yet so our timing is a bit off. I hate over paying for a house, but if the wife ain't happy, I ain't happy.
Where in Ohio are prices stable? According to the news your entire rust belt is in a free fall, heck according to them they are paying folks to take homes....its only worse in Detroit. As far as bottoming out, I doubt it. We have to be near the bottom, but then again you never know. Sometimes when you show folks that you are serious they all of a sudden become very flexible on pricing and terms. BTW, ever heard of http://www.zillow.com ???? incredible site although it doesn't work so well for some states.
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