Should I get a mortgage online or from a local lender?

[cjchaps]

I made an offer on a house today. If it's accepted, I'm going to need to borrow a bunch of money. Should I go online, or should I go to a local brick and mortar place? I should be able to get a lower rate going with an online place like eloan, or etrade right?

 

[fastz28]

1. Should've gotten a mortgage approved before making offers
2. Try both online and B&M and pick the lower overall rate.

 

[filmmaker]

Wouldn't you make sure you have the ability to get the money before putting an offer down on a house?

 

[SCSIfreek]

depends on the rates you're getting. Get Good faith estimate from both just to be on the safe side. Although you dont have much time at hand, I'll go local.


--Scsi

 

[cjchaps]

I've already been preapproved for the amount by a local place(Lasalle Home Mortgage). I didn't sign a contract saying I would use them when I bought a house, so I can still use them, or go to an online place.

 

[rh71]

Check rates online, call them on the phone. Wells Fargo did us well. They also have a free (NO COST WHATSO-FRIGGIN-EVER) refinance deal, so they care about their customers. They even threw in a free 4day/3night vacation to anywhere in the world (as part of my employee discount)... but they had great service throughout.

 

[bernse]

There should be mortgage brokers in your area which will shop around for you by putting you out for a bid with the mortgage places. Thats what we did and got an AWSOME rate.

I will also echo that you should have done this first, before even making an offer.

 

[royaldank]

Check around. Try a couple of places. Also, see if there are any mortgage investment places around you. These are not banks, but rather a sort of wholesale dealer getting rates from multiple places. See, with a bank, you typically only have access to their rates which are coming from either their head office or the place they sell their loans. With an investment type company, they will have a bunch of places that compete for their loans. You get more program choices and typically lower rates. After you get the loan, that company sells it off in bulk to another company that will service the loan from there on out. I used one of these places and got a 1/1 ARM starting at 3.5% (first annual increase isn't until Jan 05 with 1% max increase).

 

[josphII]

Originally posted by: bernse
There should be mortgage brokers in your area which will shop around for you by putting you out for a bid with the mortgage places. Thats what we did and got an AWSOME rate.

I will also echo that you should have done this first, before even making an offer.

exactly, talk with several mortgage brokers and pick the best one. they will negotiate the best rates with the lenders (banks)

 

[machintos]

Make sure that you're not paying:
1. origination fees
2. Points (unless you choose to buy down rates)
3. prepayment penalties (in the future if you decide to refinance with another bank)

Know that closing costs consist of:
1. Lender fees (look for the absolute lowest lender fees)
2. Title company fees (should be the same no matter what bank you go with) - call the title company to get the break down on their fees.
3. Appraisal fees (you pay the appraiser at the door, not at closing)
4. Escrows (should be the same no matter what bank you go with)
5. Prepaid interest (for the month you're closing you loan in)

Bottom line: LOOK FOR THE LOWEST LENDER FEES because No.2 - No.4 should be the same no matter who you go with.

If you have any question, please feel free to pm or email me with your questions. You can see in my signature that I am a loan officer and maybe I can help you with your loan if you wish. Otherwise, I'd be more than happy just to answer your questions.

 

[dquan97]

Originally posted by: machintos
Make sure that you're not paying:
1. origination fees
2. Points (unless you choose to buy down rates)
3. prepayment penalties (in the future if you decide to refinance with another bank)

Know that closing costs consist of:
1. Lender fees (look for the absolute lowest lender fees)
2. Title company fees (should be the same no matter what bank you go with) - call the title company to get the break down on their fees.
3. Appraisal fees (you pay the appraiser at the door, not at closing)
4. Escrows (should be the same no matter what bank you go with)
5. Prepaid interest (for the month you're closing you loan in)

Bottom line: LOOK FOR THE LOWEST LENDER FEES because No.2 - No.4 should be the same no matter who you go with.

If you have any question, please feel free to pm or email me with your questions. You can see in my signature that I am a loan officer and maybe I can help you with your loan if you wish. Otherwise, I'd be more than happy just to answer your questions.

So points are worth it only if it buys down the interest rate?

 

[Mr N8]

Check ING Direct's mortgages. They look to be pretty good. It's always easier to deal with a local lender, though, IMO.

 

[CPA]

Originally posted by: dquan97

Originally posted by: machintos
Make sure that you're not paying:
1. origination fees
2. Points (unless you choose to buy down rates)
3. prepayment penalties (in the future if you decide to refinance with another bank)

Know that closing costs consist of:
1. Lender fees (look for the absolute lowest lender fees)
2. Title company fees (should be the same no matter what bank you go with) - call the title company to get the break down on their fees.
3. Appraisal fees (you pay the appraiser at the door, not at closing)
4. Escrows (should be the same no matter what bank you go with)
5. Prepaid interest (for the month you're closing you loan in)

Bottom line: LOOK FOR THE LOWEST LENDER FEES because No.2 - No.4 should be the same no matter who you go with.

If you have any question, please feel free to pm or email me with your questions. You can see in my signature that I am a loan officer and maybe I can help you with your loan if you wish. Otherwise, I'd be more than happy just to answer your questions.

So points are worth it only if it buys down the interest rate?

Even then it may not be worth it. Depends on how long you live in the house to recoup the costs of the point.

 

[DurocShark]

Go with a good local broker. Make sure you do NOT get a loan from Washington Mutual, Long Beach Mortgage, Fleet Mortgage, or any other Wamu owned company. They're always getting in trouble for mismanaging escrow accounts.

I work for Ameriquest, and can tell you that the first offer you get is NOT the lowest. So try to drop the rate a coupla points without raising the discount points. Orig fees are high if you're a 2a credit risk (FICO of under 600) or lower (a FICO of 660 or higher will get you some sweet deals).

Hope this helps!

(I used to work for Long Beach Mortgage, and currently work for Ameriquest in IT so cannot help you negotiate the rates or anything...)

 

[machintos]

Originally posted by: CPA

Originally posted by: dquan97

Originally posted by: machintos
Make sure that you're not paying:
1. origination fees
2. Points (unless you choose to buy down rates)
3. prepayment penalties (in the future if you decide to refinance with another bank)

Know that closing costs consist of:
1. Lender fees (look for the absolute lowest lender fees)
2. Title company fees (should be the same no matter what bank you go with) - call the title company to get the break down on their fees.
3. Appraisal fees (you pay the appraiser at the door, not at closing)
4. Escrows (should be the same no matter what bank you go with)
5. Prepaid interest (for the month you're closing you loan in)

Bottom line: LOOK FOR THE LOWEST LENDER FEES because No.2 - No.4 should be the same no matter who you go with.

If you have any question, please feel free to pm or email me with your questions. You can see in my signature that I am a loan officer and maybe I can help you with your loan if you wish. Otherwise, I'd be more than happy just to answer your questions.

So points are worth it only if it buys down the interest rate?

Even then it may not be worth it. Depends on how long you live in the house to recoup the costs of the point.

Exactly what he said, points are NOT worth paying if you're not staying in the house for very long.
If you're planning on owning the house after a 30-yr, 20-yr, or a 15-yr fixed loan, then you might want to pay as many points as possible to get the lowest interest rate. If you're planning on staying in the house for less than 7 years, then there's no point in paying for points.

And by the way, yes, points are only worht it if it buys down the interest rates because that's what points are for.