Mortgage Companies Recommendations

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Soccerman
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Joined: Sun May 12, 2013 2:13 am

Mortgage Companies Recommendations

Post by Soccerman » Mon Aug 19, 2013 12:19 pm

I am in the process of looking to secure a mortgage for a home. Which companies have you worked with and would you recommend them?

Have heard to steer clear of BOA. Any other advice regarding rates, points, etc. would be greatly appreciated.

Mortgage will be for just over $140k, with 20% down. Have already been pre-approved for $160K, but am excited to not use all of that.

Have E-Fund of over 9 months and ROTHs are fully contributed for this year. No 401ks at the moment with current new job but eligibility is coming for wife's.

Thanks in advance for the help.

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G-Money
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Re: Mortgage Companies Recommendations

Post by G-Money » Mon Aug 19, 2013 12:34 pm

Take 15 minutes to shop around. Get instant, online quotes from: Amerisave, Aimloan, NMA, Firstib, and PenFed. No personal info required. Check also with local banks and credit unions. Go with whichever has the best combo of rates/closing costs. I've never found megabanks to offer competitive mortgage rates, but YMMV.

As a personal policy, I've never paid points, and I tried to keep my closing costs as low as possible (did several no-closing cost loans). The rate on the 10-year rose pretty rapidly in the span of 3 months (about 100 bp). They could drop that quickly, too. If they did, you might want to refi. Having relatively little sunk costs makes that psychologically painless.
Don't assume I know what I'm talking about.

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Sbashore
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Re: Mortgage Companies Recommendations

Post by Sbashore » Mon Aug 19, 2013 12:59 pm

I'm not trying to ignite a debate, but my personal experience with a mortgage application from Navy Federal Credit Union was horrendous. They backed out of a closing 48 hours before it was to close because of a bad appraisal, that turned out to be inaccurate. They then refused to refund my application fees, claiming that I really never qualified for the loan I applied for. It was all just lies and covering themselves. I got a mortgage elsewhere, the property appraised just fine, and I am now happily settled in my newly built home. I'll never trust NFCU ever again.
Steve | Semper Fi

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danwhite77
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Re: Mortgage Companies Recommendations

Post by danwhite77 » Mon Aug 19, 2013 1:05 pm

FWIW, I strongly recommend against using LendingTree. That mistake cost me a significant amount of money. It's basically a bunch of mortgage brokers. If I were looking for a lender right now, I would stick with large banks including Wells Fargo. Just my $.02.
"While some mutual fund founders chose to make billions, he chose to make a difference." - Dedication to Jack Bogle in 'The Bogleheads' Guide to Investing'.

Soccerman
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Re: Mortgage Companies Recommendations

Post by Soccerman » Mon Aug 19, 2013 3:36 pm

Do you think one local bank (First Fidelity), two major national banks (Chase, Wells Fargo), regional (Bank of the West) and maybe PenFed would be a good sample to choose from.

What should someone who is young and has excellent credit expect to get in terms of interest rates, costs, etc.

I have heard you can negotiate and remove some of the bogus charges done at closing time (administrative fees). Anyone had any experience with this thought.

Thanks

Luke Duke
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Location: Texas

Re: Mortgage Companies Recommendations

Post by Luke Duke » Tue Aug 20, 2013 9:51 am

danwhite77 wrote:FWIW, I strongly recommend against using LendingTree. That mistake cost me a significant amount of money. It's basically a bunch of mortgage brokers. If I were looking for a lender right now, I would stick with large banks including Wells Fargo. Just my $.02.
I used Lending Tree several years ago and I had a good experience. I would also recommend going with the lender that will cost you the least amount of money (fees + interest rate). Your loan will probably be sold in a year anyway, which is entirely beyond your control, so after closing your choice in lenders won't matter.

investingdad
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Re: Mortgage Companies Recommendations

Post by investingdad » Tue Aug 20, 2013 10:02 am

Provident Funding (provident.com)

We worked with them through a local broker three times and each time everything went smoothly.

letsgobobby
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Re: Mortgage Companies Recommendations

Post by letsgobobby » Tue Aug 20, 2013 12:29 pm

These questions lead to such intriguing answers. It's fascinating to see how others make major financial decisions.

What's important to you? For me, price is always paramount. I want the absolute lowest interest rate and the absolute lowest fees. This means I have no loyalty to any mortgage lender, I won't use a mortgage broker (preferring to work directly with a lender), and I always go online comparison shopping. Also, If the servicer is hard to work with, it's an inconvenience I can live with, if I know I have the lowest possible price.

For my last few refis I have first checked out the Mortgage professor's website, where you will see the lowest wholesale rates available and get a sense of what the market is currently offering.

Then I go to bankrate.com and get price quotes. Bankrate does a large volume of business so most lenders offer a lower rate if you were referred by bankrate.

The last 2 refis I have ended up with LoanDepot.com because they have had the lowest rate/fees of any lender for the product and location I was dealing with. They happen to have very good service, and have gotten our refis done with in 30-35 days, well within their 45 day lock.

We are currently in a 30 year fixed 3.25 that we paid no points or origination/lender fees for, and received a $400 credit toward closing costs.

Previously we were in a 15 year fixed 2.875 with no points/lender fees.

In a different house, the previous refi was with ING Orange following their "Black Friday" sale where we got a 5 year loan (amortized at 30 years) with a balloon due at the end of term for 1.99% and a $2000 credit toward closing (net closing costs ($176)).

In all cases the APR (combination of rate and fees) was the best I could possibly find, bar none.

MattE
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Re: Mortgage Companies Recommendations

Post by MattE » Tue Aug 20, 2013 4:24 pm

My wife and I just closed on a new home in June with National Mortgage Alliance, and the process with them was fairly painless and straightforward. We were also able to put them in a bidding war against AimLoan, which ultimately led to thousands of dollars of origination fees being knocked off even when we wanted a 60-day lock window.

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BrandonBogle
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Re: Mortgage Companies Recommendations

Post by BrandonBogle » Tue Aug 20, 2013 4:33 pm

Sbashore wrote:I'm not trying to ignite a debate, but my personal experience with a mortgage application from Navy Federal Credit Union was horrendous. They backed out of a closing 48 hours before it was to close because of a bad appraisal, that turned out to be inaccurate. They then refused to refund my application fees, claiming that I really never qualified for the loan I applied for. It was all just lies and covering themselves. I got a mortgage elsewhere, the property appraised just fine, and I am now happily settled in my newly built home. I'll never trust NFCU ever again.
I had a similar experience with AmSouth back before the Regions Bank days for my very first home purchase. No fees lost, but they backed out 48 hours before closing since they apparently ran the original numbers based on my paystub that had overtime on it (even though I sent them three stubs and only one had overtime) and had requested my latest pay stub at that time. Mom's HELOC bought my house and two or three weeks later I had a mortgage from an online lender and paid mom back.
Soccerman wrote:Do you think one local bank (First Fidelity), two major national banks (Chase, Wells Fargo), regional (Bank of the West) and maybe PenFed would be a good sample to choose from.
Yes, but I would also looking at Bankrate.com and other websites to see what lenders are offering and be open to other "online lenders".

Also, in all my mortgages over the years, the ONLY fee I've ever paid (in connection with the mortgage) is the lender's title insurnace policy. And in most of my morgages, I didn't even pay that. No points, no app fees, no credit report fees, no origination fees, nothing. I would highly take the same Boglehead approach against needlessly paying fees if you can get the same product (mortgage terms and rate) elsewhere, regardless of the lender.



ETA: I am currently in the middle of getting a second mortgage from Hanscom FCU on my house. It's a HELOC that I have no immediate need for, so I haven't pushed them to do anything quickly. It's been three weeks and we are just about ready to close, but that was only b/c it wasn't until this past Friday (today is Tuesday) that the loan specialist got my application and began processing it. Between Friday and Monday, she already reviewed my paperwork, ordered and got my appraisal, contacted my insurance agent, and set everything up for my loan. It's going through underwriting now and then we set a closing date. Very simple process.

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