Mortgage Companies

[southerndoc]

I'm finishing residency and will be moving soon. I wanted to rent an apartment for a year to get better acquainted with the area so I can figure out what part I wanted to live in permanently.

As I've never owned a house before, I am curious if you have any recommendations for who to check with for financing. I've been checking various websites for the best rates (30-year jumbo loan with fixed interest), but I don't want to go with a lender that is "iffy."

[sweeps]

Check out Penfed as one option.

[Seeker]

Here's another link that lists the top 5 for 2007 (according to their polls):

Top mortgage companies in the United States and Canada

But there's also some interesting articles there too.


Home Loans, Refinancing, New Home Financing: GMAC Mortgage

GMAC is quite popular as well. They purchase and service many mortgages from banks ... and their billings are detailed sufficiently that if you choose to pay more toward principal, you can detail it when you send them a check. They break down the portion of $'s for interest as well as the $'s for principal and confirm the amounts allocated on their next billing statement; you always know the exact amount due in total and the exact YTD totals.

[ThriftoRama]

I always go straight to the local bank. I never use mortgage brokers or mortgage companies. If you cant get a loan from a traditional bank, you can't afford to buy a house...

[disneysteve]

Originally Posted by ThriftoRama

If you cant get a loan from a traditional bank, you can't afford to buy a house...

I'm not sure if that is true or not, but don't restrict yourself to banks if you can get a better deal elsewhere. Just a fraction of a point in interest can mean thousands of dollars over the life of the loan.

We did our last refi with Quicken loans and I was very happy with their service. We were able to do everything but the actual closing online and via fax which made it very convenient. You can check them out at quickenloans.com.

[project15]

Would anyone recommend actually going to a mortgage broker? We're meeting with one this wednesday as a recommendation from two of our friends who have used him since we plan to buy in the next few months. It's our first time buying, so I would like to be walked through the process with him than try to do it myself.

[disneysteve]

Originally Posted by project15

Would anyone recommend actually going to a mortgage broker? We're meeting with one this wednesday as a recommendation from two of our friends who have used him since we plan to buy in the next few months. It's our first time buying, so I would like to be walked through the process with him than try to do it myself.

I think the bottom line is... the bottom line. You need to compare interest rates and all fees and closing costs and go with what ever company gives the best deal.

[Brokemofo]

Originally Posted by project15

Would anyone recommend actually going to a mortgage broker? We're meeting with one this wednesday as a recommendation from two of our friends who have used him since we plan to buy in the next few months. It's our first time buying, so I would like to be walked through the process with him than try to do it myself.

I look at it this way. Why go to a broker if all he is doing is getting rate quotes from mortgage companies you could work with directly. Then he adds his fees so that he can stay in business. Plus often times banks quote brokers higher rates than they would quote you directly. So via a broker you may be paying not only a higher rate, but also paying fees you wouldn't pay otherwise. Another thing is that many banks and mortgage companies won't use brokers anymore, so they can limit their risk and not take loans from brokers who manipulate the system with bogus stated income loans and such. "Oh, you don't make enough for the loan? We'll just state that you do, so you will qualify." Worse yet, some brokers just make up stuff on peoples applications just to get the loan to go through. No wonder we have forclosures now. In short, no, I would not use a broker.

[momof1in150]

Originally Posted by Brokemofo

I look at it this way. Why go to a broker if all he is doing is getting rate quotes from mortgage companies you could work with directly. Then he adds his fees so that he can stay in business. Plus often times banks quote brokers higher rates than they would quote you directly. So via a broker you may be paying not only a higher rate, but also paying fees you wouldn't pay otherwise. Another thing is that many banks and mortgage companies won't use brokers anymore, so they can limit their risk and not take loans from brokers who manipulate the system with bogus stated income loans and such. "Oh, you don't make enough for the loan? We'll just state that you do, so you will qualify." Worse yet, some brokers just make up stuff on peoples applications just to get the loan to go through. No wonder we have forclosures now. In short, no, I would not use a broker.

That is not how a broker works. The broker can get you a better rate because they are dealing with larger pools of money so the bank with make a loan at a lower rate to the broker because they are putting together loans that are a higher dollar then you can get at a bank. Many times a broker can get you a loan for less then the bank can loan you. It pays to look at all options.

There are subprime brokers that did add to the problem with foreclosures but it was the banks that loaned the money, not the broker. They couldn't get those people loans that the bank wasn't willing to give. The issue with mortgages is lack of information to people and their unwillingness to understand what they were getting themselves into.

We did our loan through a broker and secured our mortgage through Wells Fargo for less then our bank would loan us the money. It pays to do your research and find the best option for you. This had nothing to do with the subprime market as there are good brokers out there that can get you a better rate.

[Brokemofo]

Originally Posted by momof1in150

That is not how a broker works. The broker can get you a better rate because they are dealing with larger pools of money so the bank with make a loan at a lower rate to the broker because they are putting together loans that are a higher dollar then you can get at a bank. Many times a broker can get you a loan for less then the bank can loan you. It pays to look at all options.

There are subprime brokers that did add to the problem with foreclosures but it was the banks that loaned the money, not the broker. They couldn't get those people loans that the bank wasn't willing to give. The issue with mortgages is lack of information to people and their unwillingness to understand what they were getting themselves into.

We did our loan through a broker and secured our mortgage through Wells Fargo for less then our bank would loan us the money. It pays to do your research and find the best option for you. This had nothing to do with the subprime market as there are good brokers out there that can get you a better rate.

I got my mortgage through Wells Fargo as well.

Had you bypassed the broker, you may have got a better rate most likely. Trust me, the mortgage companies have multiple sets of rate sheets. Sometimes broker rates are higher. The broker can also add their own fees too. I'm not saying a broker will always yield a higher rate, but will many times have a higher APR.

Edit: After further review I must admit many times Brokers do get better wholesale rates, but they almost always will add broker loan origination fees resulting in much higher closing costs than one would have if not using a broker. So, when contemplating using a broker one needs to carefully examine the overall APR, and take into account how long they will likely remain in the home to see if paying the extra broker fees makes sense.