[RYCeT]

That's a very good score, I don't think you will have any problem with the mortgage. Edwood, try to ask for first time homebuyer program. I was offered by HSBC with that kind of program, 3% down payment, no points and the interest rate is comparable to conventional mortgage. (The one that I'm offered is not conventional mortgage but my RE agent told me that it's as good as conventional.)

 

[Edwood]

Are there disadvantages or advantages to having a loan from the same bank that you have your checking/savings accounts with?

-Ed

 

[JMT]

Quote:

Originally Posted by Edwood Are there disadvantages or advantages to having a loan from the same bank that you have your checking/savings accounts with? -Ed

Advantages, I cannot think of one disadvantage.

 

[Edwood]

Quote:

Originally Posted by JMT Advantages, I cannot think of one disadvantage.

I guess it does help that they have more info about me?

I went to my bank, but they didn't have a very competitive rate, but they did give me a card to talk to a mortgage "specialist" of theirs?

-Ed

 

[JMT]

Talk to him/her. There are many pricing options available that your branch representative probably doesn't know about. As I mentioned before, it will all boil down to what is most important to you: lower monthly payments or lower closing costs.

 

[Edwood]

Quote:

Originally Posted by JMT Talk to him/her. There are many pricing options available that your branch representative probably doesn't know about. As I mentioned before, it will all boil down to what is most important to you: lower monthly payments or lower closing costs.

I would prefer lower monthly payments. I can "afford" up to $35K upfront (this would include the downpayment)

-Ed

 

[dariusf]

Hi Edwood, good luck in your search

You might want to consider getting a place needing allot of fixing up and doing the work yourself as you live there. You can save quite a bit in some cases. When you turn around selling it in a few years you should also be able to make some money on your investment along with the usual property value increases. Assuming its in a good area with prices going up.

As for the mortgage, I just closed a refinance on our townhouse. After shopping around for a new mortgage, calling a bunch of places listed on bankrate.com (great site) and asking around I found what seems like a great deal. I refinanced $78k mortgage + $12k extra so I can pay off my wifes new Lexus and I got the 4/1 ARM (we want to buy a house in 2 years) with 4% interest. No points and the total closing cost was around $900. Some places charge as high as $2000 for the closing. I applied online, got approved in a few minutes, got the base paperwork FedExed the next day and closed in about 2 weeks in the convenience of my house

The bank is ING ingdirect.com I think this was a great deal from what I have found in other companies and I'm very satisfied. As far as I can remember our first mortgage closing cost was around $1500.

Good luck

 

[Edwood]

Heheh, you think I could get one lender to pricematch the other's rate?

LOL, I suppose this isn't like shopping at Best Buy. (although, they really don't pricematch anymore)

-Ed

 

[Edwood]

I did a Bankrate.com search and one lists 4.99%/0 POINTS/27 YR FIXED. 27 year loan? Never heard of one like that. Would 4.99% 27yr fixed be better than a 5.5% 30yr fixed?

-Ed

 

[dariusf]

Quote:

Originally Posted by Edwood Heheh, you think I could get one lender to pricematch the other's rate? LOL, I suppose this isn't like shopping at Best Buy. (although, they really don't pricematch anymore) -Ed

With my experience with many lenders I called, it sounded from the conversations like they did not care much for my business. Some people I talked to have even been border line arrogant and not really caring for my business in any way, not to mention not very informative or knowledgeable

Strange as I was under the impression that there are way too many lenders and that they should be fighting for the business from what my friend in the real estate business tells me. Maybe the people working the phones don't get any commission on the 'sales' they make the way people in the small mortgage offices do. I called one rather large bank the other day to inquire about construction loans (looking in to building a house) and the lady on the phone was very bitchy, almost like I was taking up her time or something. And I'm always trying to be very nice and stuff... I was going to talk to her manager but I just didn't feel like getting heart burn if you know what I mean

The ING experience was very deferent, maybe they get commission

anyway, got some programming to finish up before I leave home .... 15 more min

 

[dariusf]

Quote:

Originally Posted by Edwood I did a Bankrate.com search and one lists 4.99%/0 POINTS/27 YR FIXED. 27 year loan? Never heard of one like that. Would 4.99% 27yr fixed be better than a 5.5% 30yr fixed? -Ed

did you set the sort on the APR column? I guess the rates could have changed? also there are deferent rates in deferent parts of the country

I checked the ING bank and they have

3/1 4.40% 4.418%
5/1 5.10% 4.680%
7/1 5.75% 5.094%

I don't think they have the 15 or 30 year fixed mortgages but most people don't stay in one place longer then their 7 year 7/1 plan

 

[Edwood]

When applying for loans, can I apply for multiple pre-approved loans and pick the one I like?

Anybody know anything about Mortgage Capital Associates?
http://www.mtgcapital.com/

Wells Fargo seems to be a safe bet, but their rates are higher.

Then there's the Mortgage Brokers.

-Ed

 

[dariusf]

Quote:

Originally Posted by Edwood When applying for loans, can I apply for multiple pre-approved loans and pick the one I like? -Ed

Hi Ed, still looking?

From what I understand there is a pre-approval letter which does not necessarily many you will get the loan for sure and there is something else which I can't remember the actual name but something like a commitment letter (?) From what I have heard some places might charge a 'cancellation' fee to cover things like the credit check they had to do.

 

[Edwood]

WOAH!

I think Bank of America is out.

They listed $11,663.95 in closing costs?!?!?!

Items Payable in Connection with Loan - HUD Series 800 Items Payable in Connection with Loan - HUD Series 800
Subtotal $6,565.80

Items to be Paid in Advance (Premiums) - HUD Series 900 Items to be Paid in Advance (Premiums) - HUD Series 900
Subtotal $1,654.80

Reserves - Items Used for Escrow/Impound Reserves - HUD Series 1000
Subtotal $1,778.01

Additional Title Charges - HUD Series 1100
Subtotal $1,590.34

Government Recording/Transfer Charges - HUD Series 1200
Subtotal $75.00

Total Estimated Closing Costs $11,663.95


ARE THEY INSANE!!!!! What? Am I reading it wrong?

-Ed

 

[Edwood]

Do I need to worry about the place I get a mortgage from a lender and then they go out of business somewhere in the future?

-Ed