mortgage companies seek out rates; they do not have them. They send notices of inquiry
to hundreds of banks. YOU can do the same. Stick to your area first. And your credit
union. IF you wish further help, I am available.
My experience is that people that pick a mortgage company because they find someone that quotes a slightly lower rate often find they get messed up somehow (hidden fees, incompetent workers, or worse).
If you have a friend or family member that recently got a loan thru someone local to your area- I would ask them if they were happy with who they used- check and make sure that guy is competitive, and use them.
Generally speaking large “direct lenders” offer the lowest rates and lowest fees. Are you looking for a normal conforming 30 year loan? Often some direct lenders offer a specialty type loan that are very reasonable like with 10-15 year loans or 30 year amortized all due in 5 to 7 years. Often these loans are good especially if you think you will move within 5 or 7 years.
I’d check on the internet with companies like Quicken Loans or Ditek….both are large lenders that have low rates and fees and they can take your application over the phone and pre-approve you within a couple of hours and close within 30 days.
Loan brokers try and shop your loan to the direct lenders….that takes more time, the loan broker has little control over the loan processing, they charge more because they are nothing more than a middle-man. If you have credit problems or problems showing income, or self employed sometimes a loan broker is very helpful get a loan, but if your situation is straight forward, decent credit, and show income go with a direct lender.
And no, all lenders do not have the same rates and lending programs. Mortgage brokers often jack up their interest rates by 1/8 to 1/2 percent because they get a higher commission from the lender when they do. Also, when lenders promise a no or low cost loan they recoup those costs by jacking up the interest rate. There is no such thing as a “free loan”. You pay it one way or the other.
what difference does it make about interest rates. All banks and lending institutions have the same mortgage programs with difference rates for the various mortgage programs they have available.
Your interest rate will be based on your credit scores, ratios and credit report, not the bank or institution that appears to offer the lower rate.
Because someone got a lower rate does not mean that you will be able to get the same rate. Each person’s mortgage loan is different.
There are many things you should do, but the first thing you should do is contact a mortgage broker that does FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.
You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.
He will inform you of what is necessary once you contact him.
This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.
I hope this has been of some benefit to you, good luck.
{ 5 comments… read them below or add one }
Bankrate.com is a good resource.
mortgage companies seek out rates; they do not have them. They send notices of inquiry
to hundreds of banks. YOU can do the same. Stick to your area first. And your credit
union. IF you wish further help, I am available.
My experience is that people that pick a mortgage company because they find someone that quotes a slightly lower rate often find they get messed up somehow (hidden fees, incompetent workers, or worse).
If you have a friend or family member that recently got a loan thru someone local to your area- I would ask them if they were happy with who they used- check and make sure that guy is competitive, and use them.
Generally speaking large “direct lenders” offer the lowest rates and lowest fees. Are you looking for a normal conforming 30 year loan? Often some direct lenders offer a specialty type loan that are very reasonable like with 10-15 year loans or 30 year amortized all due in 5 to 7 years. Often these loans are good especially if you think you will move within 5 or 7 years.
I’d check on the internet with companies like Quicken Loans or Ditek….both are large lenders that have low rates and fees and they can take your application over the phone and pre-approve you within a couple of hours and close within 30 days.
Loan brokers try and shop your loan to the direct lenders….that takes more time, the loan broker has little control over the loan processing, they charge more because they are nothing more than a middle-man. If you have credit problems or problems showing income, or self employed sometimes a loan broker is very helpful get a loan, but if your situation is straight forward, decent credit, and show income go with a direct lender.
And no, all lenders do not have the same rates and lending programs. Mortgage brokers often jack up their interest rates by 1/8 to 1/2 percent because they get a higher commission from the lender when they do. Also, when lenders promise a no or low cost loan they recoup those costs by jacking up the interest rate. There is no such thing as a “free loan”. You pay it one way or the other.
what difference does it make about interest rates. All banks and lending institutions have the same mortgage programs with difference rates for the various mortgage programs they have available.
Your interest rate will be based on your credit scores, ratios and credit report, not the bank or institution that appears to offer the lower rate.
Because someone got a lower rate does not mean that you will be able to get the same rate. Each person’s mortgage loan is different.
There are many things you should do, but the first thing you should do is contact a mortgage broker that does FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.
You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.
He will inform you of what is necessary once you contact him.
This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”