Author Topic: Best Bank or Credit Union for Mortgage  (Read 4067 times)

Wanna-Be-FI-Bri

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Best Bank or Credit Union for Mortgage
« on: March 25, 2015, 10:32:30 AM »
Unfortunately, I don't have hundreds of thousands of dollars...yet.  I'm looking to buy a condo/house and can afford to put 20-25 percent down.

What bank or credit union gives the best rate?

They have to pull my credit score each time (which lowers it) I go so I don't to apply at too many institutions.

Thanks!

AlwaysBeenASaver

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Re: Best Bank or Credit Union for Mortgage
« Reply #1 on: March 25, 2015, 10:38:22 AM »
We've always gotten better rates through mortgage lenders/mortgage brokers than directly through banks and credit unions. And both the mortgage lenders and the banks have always been able to give me a list of rate options w/o pulling my personal info - they just need the info on your predicted loan, down payment, and city/county. I think the rates they give out are assuming good credit, and of course once you choose one they will eventually pull your credit report. In my experience they actually pull it twice, once at the start of the loan process, then once just before closing, to make sure you haven't made any drastic changes in the month or 2 that has gone by during the process.

Greg C

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Re: Best Bank or Credit Union for Mortgage
« Reply #2 on: March 25, 2015, 01:01:53 PM »
Difficult question to answer.  I've been doing loans very successfully for 8 years, and the best rates/fee's is not something that remains static.  Some days my company is kicking ass, and other days I'm embarrassed by how far out of the market we are.  Lately credit unions have not been very competitive, I probably wouldn't spend time in that direction.  If you're computer savvy, lendingtree.com will put you in touch with several lenders who compete aggressively for your business.  Most likely you'll hear from loandepot.com and Quicken first if you go that route, but make sure you get additional quotes as they pay big money to be the first to the table when you submit your info, and their rate/fee structure may be slightly higher on account of that expense, although they're the largest non-bank lenders and you have more recourse with bad quotes/poor customer experience.  Another thing to consider when you're purchasing a home rather than refinancing...lenders have different rates compared to each other on different days and the market is also moving at the same time.  Kind of like gas stations that share an intersection.  I would select 3 to work with, then just worry about finding your home.  You can't lock a rate until you have a contract anyway.  When you have a fully executed purchase contract in hand you need to compare lenders on the same day because rates change daily and that will get you the best comparison.  Also, mortgage bankers are ABSOLUTELY NOT made equal, nor is their level of experience.  You can at least see their work history by checking them out on the NMLS consumer access website.  I use this info personally to shoot holes in my competition who are often new to the industry.  Google 'nmls consumer access', plug in the required info and bingo, you have their entire (self reported) work history.  Do they job-hop?  Did they work at Papa Johns six months ago?  Experience is obviously important (although it doesn't go far if you're working with an idiot) and tenure gets a banker leverage with his/her management.  Both are important.  Ask plenty of questions that require a banker to think.  If the answers are mush, or if they change the subject, or sound like they're just making shit up, or rush you off the phone, then you'll want to move on.  Wrap up the call in 30-40 minutes tops though; good bankers don't need your business and will view you as a time-suck if you linger for an hour, and will subsequently avoiding the crap out of you.  If you have follow-up questions, move to email.  We don't have time for needy customers if we're very good, so do your research, ask intelligent questions and be succinct.  If they field your questions well, you're in decent shape.

Good luck with your home purchase!

Greg C

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Re: Best Bank or Credit Union for Mortgage
« Reply #3 on: March 25, 2015, 01:17:00 PM »
Follow up:  I was just making eggs after writing that and remembered loandepot does not have much experience in purchase transactions.  They were built through the refinance boom since 2010 and although plenty of their bankers have experience with purchase, the company as whole has barely dabbled in this and their processes were built on a different model.  I would recommend my friends/family go elsewhere for a purchase transaction regardless of pricing, so I'll say that here too.

boarder42

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Re: Best Bank or Credit Union for Mortgage
« Reply #4 on: March 25, 2015, 01:32:51 PM »
i'd look on zillow i found a 30 year in my area yesterday for 3.55 APR which is pretty dang good. 

also PenFed Credit Union isnt bad and easy to join even if you arent military.

frugaliknowit

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Re: Best Bank or Credit Union for Mortgage
« Reply #5 on: March 25, 2015, 01:36:21 PM »
Once you begin seriously shopping, you will need a "pre-qualification" letter from a lender.  Basically any lender can do this for you.  The letter says (paraphrasing)  "John Doe is qualified to purchase a property up to $325,000 blah, blah blah..."  This is to provide comfort to sellers with any offer.  The lender may or may not pull your credit for this.  If you have recently checked your credit, you might prefer a lender who does not (so that you don't have a pull in addition to the one you will have when you make the actual application).

Once you have a contract and the property has passed inspection and attorney's approval, shop intensively.  If you are buying a condo, certain lenders will not be interested and others will need to qualify the condo (certain number of units in the building, certain number of units no longer for sale, blah, blah, blah).  Once you find the best deal, decide whether you want to lock the rate (maybe for a fee) or let it float during the application process.  Then compare the rates and fees, decide on one, then make the application (over the phone or on-line).

As for your credit score, as long as you do all of your applying within a short period of time (believe it's 30 days), your score will be minimally impacted by the pull and be treated as if there were only one inquiry (not including any for a pre-qualification done more than 30 days earlier).  Most likely, you will make only one application, unless something goes wrong (like a do-do realtor or loan broker that doesn't know what they are doing...).


« Last Edit: March 25, 2015, 01:41:33 PM by frugaliknowit »

 

Wow, a phone plan for fifteen bucks!