Best home mortgage lenders?

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financial.freedom
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Best home mortgage lenders?

Post by financial.freedom »

We are in South Bay area (LA County) and looking to buy a home with >20% down and mortgage of about 1 M. We have an approval letter from a local bank. But I think we can get a better rate elsewhere.


1. Which lenders are best right now?

2. Any recommendations specifically for jumbo loans?

3. How many lenders should we contact?

4. Any other advice when reviewing terms/comparison shopping for home mortgages?



Thank you in advance.
Last edited by financial.freedom on Tue Apr 21, 2015 7:36 pm, edited 1 time in total.
Leemiller
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Re: Which lender is best for jumbo loan mortgage (>1M SoCal)

Post by Leemiller »

We got the best rate and overall deal from a local credit union, but I'm not in CA. What is your rate/ terms? I think you should be in the 3.5 range.
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sunny_socal
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Re: Best home mortgage lenders?

Post by sunny_socal »

From my limited experience:

1) Online lenders: available through bankrate.com, google search etc. You'll get a great rate, but very slow processing and crappy customer service. It can be frustrating if you're trying to close on deal quickly
2) Big Banks: poor rates, but marginally better customer service. At least you can call someone.
3) Mortgage brokers: great rates and great customer service. Ask your realtor for a reference.

I've done my last 3 refi/purchase deals through broker and will now recommend this route to everyone.
renter
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Re: Best home mortgage lenders?

Post by renter »

I shopped around a lot and got the best rate from my credit union.
yowzer9
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Re: Best home mortgage lenders?

Post by yowzer9 »

Provident Lending
I've done 2 refis with them. Originally, I was with Wells Fargo.

I'm in CA and gave a jumbo 15 year at 3.25%.
Raladic
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Re: Best home mortgage lenders?

Post by Raladic »

We also just refinanced using provident funding, all very easy and fast at great rate 3.625% for 25yr.
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Frankonomics
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Re: Best home mortgage lenders?

Post by Frankonomics »

Seckel Capital (Broker) in 2009 who used Provident (lender) for 4.5% @ 30yrs. No-fee refinance in 2013 directly with Provident for 3.5% @ 30yrs. Smooth process for both - 3 weeks total first time/2 weeks total second time.

"Provident Mortgage Benefit Program" saved me 0.25%.
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hand
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Re: Best home mortgage lenders?

Post by hand »

sunny_socal wrote:From my limited experience:

1) Online lenders: available through bankrate.com, google search etc. You'll get a great rate, but very slow processing and crappy customer service. It can be frustrating if you're trying to close on deal quickly
2) Big Banks: poor rates, but marginally better customer service. At least you can call someone.
3) Mortgage brokers: great rates and great customer service. Ask your realtor for a reference.

I've done my last 3 refi/purchase deals through broker and will now recommend this route to everyone.
This aligns with my experience.

Anecdotally, I've heard good things about Credit Unions, but have never found one that could beat my preferred broker.
For primary purchase, I typically recommend a broker, with refinancing (typically more tolerant of delays) the better rate of a broker, online lender or credit union.
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goingup
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Re: Best home mortgage lenders?

Post by goingup »

We used a mortgage broker for the last home purchase (Jumbo) and refi's. I suggest doing your own research to find a broker--the ones your realtor suggests may not be the best.

The reason I liked using a broker was the level of responsiveness, competence and knowledge. GFEs really allow you to compare fees. Our broker's fee was paid by the lender (Wells Fargo). It's been a few years since the purchase and refi's but the broker was so on top of it that we closed in less than 30 days each time.
TWG1572
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Re: Best home mortgage lenders?

Post by TWG1572 »

We used Amerisave, which was heavily based on input from this forum. That was about a year and a half ago. I have nothing but positive things to say, including their rates. In an odd turn of events, they actually held our mortgage and didn't sell it off. I kept waiting and waiting for the notice that the loan had been sold, nothing ever came. I wasn't expecting that.
staythecourse
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Re: Best home mortgage lenders?

Post by staythecourse »

I have nothing to add, but have had NOTHING but bad to say about my experiences with lenders. I have closed on 2 properties and refi 3 times total and have used 4 different people and have NOT been happy with any of them.

I've used brokers AND internet and have nothing good to say. It is the ONE area of my young life I have yet to be happy as a consumer at the end of the day. FWIW, bankrate.com is good place to start checking out what numbers are available so you can make some sort of educated comparison.

I would WARN against going with what your realtor recommends because they may have something in it for them to bring business to their referral.

Good luck.
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ne2ca28
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Re: Best home mortgage lenders?

Post by ne2ca28 »

I used Wells Fargo Home Mortgage (I bank with them, as well). Easy to work with and the rate beat out another lender that the seller wanted me to use. I forgot to mention that I am in SoCal, LA County.
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mcrunyan
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Re: Best home mortgage lenders?

Post by mcrunyan »

We ended up going with Chase when we bought two years ago (jumbo in SoCal). They were great with closing and have been great in the following two years (responsive to request to close escrow impound account and whatnot). Bank of the West was a close runner up at the time.

It is worth starting by looking at the published rates of the big banks and then take the time to call them and find out what the mortgage folks can offer since it will occasionally be better than the rate published online. Yeah, it's a PITA and it takes time but we found it worth it. The banks will do hard pulls on your credit score so call them all within a short period of time to avoid multiple hard pulls on your report. We also found that the incentives the banks offer seem to change by the month; which bank is great at one point might not be the best option a month or two later. If you have a guess for the minimum amount of time you'll spend in the house, it would be worth asking for a few different point options and calculate an effective rate of APR + points/#years to see if it's worth buying down the rate. At the time we bought, the zero point jumbo rate was 3.75%, but we bought that down to 3.25% with 2 points (which meant it would only take 4 years to break even and we knew we'd be here longer than that).
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tylerdurden
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Re: Best home mortgage lenders?

Post by tylerdurden »

I've had a very good experience with US Bank Home Mortgage. I've had 3 mortgages with them: one mortgage via a broker and two where I worked directly with a US Bank rep (one a refi and one a new mortgage). My first experience with a broker was terrible, so I had been hesitant to do it again.

That said, I am currently working with a broker with our new home purchase, primarily because it is the preferred broker for the home builder, and there are associated discounts. It is early in the process, so I'm reserving judgment until the process is complete.
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TradingPlaces
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Re: Best home mortgage lenders?

Post by TradingPlaces »

ne2ca28 wrote:lender that the seller wanted me to use
is this a joke?

since when does the sellers starts to insert themselves in the middle of a lending transaction between a buyer and lender?
Grt2bOutdoors
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Re: Best home mortgage lenders?

Post by Grt2bOutdoors »

TradingPlaces wrote:
ne2ca28 wrote:lender that the seller wanted me to use
is this a joke?

since when does the sellers starts to insert themselves in the middle of a lending transaction between a buyer and lender?
The seller could have been a Bank that owned the real estate and wanted a "fast close" to get the property off the books. Some seller's will offer seller financing to move properties. Not usual practice, but it has been known to happen if a buyer were so desperate to own it at any price.
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boglebill
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Re: Best home mortgage lenders?

Post by boglebill »

Penfed has great rates. https://www.penfed.org/mortgage-rates-all/

The refinance process was a pain (mortgage processors slow and hard to get a hold of), but the rate was worth it.
Topic Author
financial.freedom
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Re: Best home mortgage lenders?

Post by financial.freedom »

Great advice, thank you!

Since there will be "hard pulls" should we limit the number of places we apply to? Maybe try 2 banks, 1 credit union and 2-3 online?

How and when in the process did you schedule the "lock" for the rate?
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mcrunyan
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Re: Best home mortgage lenders?

Post by mcrunyan »

After the first hard pull for a mortgage application, it doesn't matter how many more you do if it within 30 days (you should double check this). It will just count as a single hard pull on your credit score. http://www.zillow.com/advice-thread/Wil ... re/442015/

As for rate lock, we went with a 45 day lock as soon as we had a signed purchase contract. You probably already know this but a longer lock period will increase your rate. Try to get a "float down" option where you get either the rate you locked or the rate on the day of closing if it is lower.
Topic Author
financial.freedom
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Re: Best home mortgage lenders?

Post by financial.freedom »

That was my impression too (didn't know it was 30-day period though). Thanks!
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LowER
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Re: Best home mortgage lenders?

Post by LowER »

National Bank of Kansas City has exceeded every expectation for 6 years now, always, except that most "apply to principal" payments have been applied to one future payment and the rest to principal. Easily fixed each time but a bit of a pain because I make quite a few excess payments.
HornedToad
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Re: Best home mortgage lenders?

Post by HornedToad »

I used Wells Fargo for the purchase a year ago and they were good and the rates for Jumbo were good if you did auto-deduct from WF checking.

I'm refinancing now through Mortgage Masters. They are mainly online and discount with a great rate (3.375%) but its more like 45-60 day close so better for refinance than purchase.
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financial.freedom
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Re: Best home mortgage lenders?

Post by financial.freedom »

We locked in a jumbo 30-year fixed with zero points at Wells Fargo for 3.625% (90 day lock).

There is also option to "recast" down the road (>90days) without any fee.

Seems pretty good to me, what do you think?
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Re: Best home mortgage lenders?

Post by itstoomuch »

DS got a mortgage through the Zillow portal.
Initial rate was posted on line. A soft quote was provided on asked data, and a firm quote issued on confirmed data.
The final rate quote and associated fees was as advertised.
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davehica
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Re: Best home mortgage lenders?

Post by davehica »

We used a local mortgage broker and ended up with Provident. Closed today on a $1M jumbo in CA, 25% down, 3.875% 30 year fixed. No overall complaints with Provident, other than the number of last minute requests for documentation.
ne2ca28
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Re: Best home mortgage lenders?

Post by ne2ca28 »

TradingPlaces wrote:
ne2ca28 wrote:lender that the seller wanted me to use
is this a joke?

since when does the sellers starts to insert themselves in the middle of a lending transaction between a buyer and lender?
Not a joke and the seller asking us to do it was quite annoying. It was as if they didn't trust the information Wells Fargo provided. After being outbid and losing out on several houses, and I already had the information available and within 30 days of the Wells hard-hit, I did not want to fight too much. It was a trust sale and the seller's agent was a nit-wit and most likely wanted to see if she could get her friend (the other lender) some kick back from her "hard work".
Watts
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Re: Best home mortgage lenders?

Post by Watts »

I also had a very good experience with penfed recently. Would definitely recommend them.
jmk
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Re: Best home mortgage lenders?

Post by jmk »

yowzer9 wrote:Provident Lending
I've done 2 refis with them. Originally, I was with Wells Fargo.

I'm in CA and gave a jumbo 15 year at 3.25%.
Second thumbs up for Provident. I got my original mortgage (through broker) through them and two refinances through them (on my own=cheaper).
  • Site is very efficient: easy to use mortgage calculator and very easy to upload document pdfs.
  • Costs quoted by calculator (whicn you can do without logging in or giving info) have been extremely accurate three times (no junk fees, no last minute changes, except down).
  • Rates have been consistently lowest (even than the others sited here often) when all costs taken into account (opportunity cost of fees and monthly payments etc).
The "catch" is they only give best rates for best credit ratings. But most Bogleheads probably have that. And they do require uploading stuff like proof of income and tax forms that some others don't--but that's how they have such low rates.

My recommendation when comparing mortgages is to use Mortgage Professor's refinance calculator since it calculates the opportunity cost of fees and different payment amounts. What seems like a lower APR can be deceiving when you take into account lost interest.
Last edited by jmk on Wed Aug 17, 2016 9:55 pm, edited 1 time in total.
outdoorsygal
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Re: Best home mortgage lenders?

Post by outdoorsygal »

I think your best bet is Golden One Credit Union. On the front of their website, they offer a 30 year mortgage for 3.550% which when i did some online research a few days ago, was the best I've found
I
You'll need to drive to Sac from the Bay. They have many branches in Sac unless their woodland branch is closer. Offhand I've forgotten where Woodland is.Their interactive map on their website shows dots of where all of the branches are located. We belong to Golden One, anyone can join. Good luck
stan1
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Re: Best home mortgage lenders?

Post by stan1 »

TradingPlaces wrote:
ne2ca28 wrote:lender that the seller wanted me to use
is this a joke?

since when does the sellers starts to insert themselves in the middle of a lending transaction between a buyer and lender?
Unfortunately it has become "a thing" that hopefully won't spread too far. Some sellers in San Francisco Bay Area where there might be 10+ offers above asking price on a property let it be known they prefer buyers use a lender deemed by the seller's agent to be "responsive". You can of course say no but then seller might accept the next offer in line. Keep in mind buyers already often have "waived" an inspection in the Bay Area.
FinTruth
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Re: Best home mortgage lenders?

Post by FinTruth »

I used provident for my mortgage, and they were excellent. Just paid off the loan after selling the home last week, there were perfect for the last three years, and their website is great and lets you accomplish pretty much anything you would need.

Penfed on the other hand was a total nightmare, I am surprised by the recommendations here. I opened a HELOC with them that kept getting delayed, and they kept asking me for the exact same document (a payoff letter) over and over and over. No matter how many times I sent them the document, they would ask for it again. It was constant frustration till the end, including the title company that tried to close the loan which complained to me about how difficult they are to deal with. The title company said they had never ever seen anything like Penfed. They also had to mail Penfed a check to close the line because they were told Penfed would not accept a wire transfer...
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investorguy1
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Re: Best home mortgage lenders?

Post by investorguy1 »

financial.freedom wrote:1. Which lenders are best right now?
I would try this site. I got pre approved with them did everything on line and on the phone. It was easy and took 2 days. The rates are good and they don't offer all kinds of complicated deals with points and arms and all that. It's straight forward and you get a good rate. The vast majority of lenders sell their loans to Fannie and Fredie so they all have to follow the same rules.
www.guaranteedrate.com
tigerdoc93
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Re: Best home mortgage lenders?

Post by tigerdoc93 »

I refinanced my mortgage with Supreme Lending 4years ago. 2.875% 15 year fixed. I bought a home for my daughter 3 years ago while she was in college. Supreme lending got me another great rate. 2.99% 15 year fixed. I highly recommend this company.
chuppi
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Re: Best home mortgage lenders?

Post by chuppi »

Check out Everbank
I got mortgage in March/April 2016. I got 15year fixed @ 2.75%. I put a 30% downpayment to avoid the jumbo and took the loan for 625K instead. My closing cost was also relatively less at around 6000$. They also closed the loan in 22days.

If you are in California hot market, try to get a lender who is local to the area (at least person from a local branch). The lender (the loan agent) in my case had great yelp reviews. The seller agent knew the lender which helped close the deal.
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unclescrooge
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Re: Best home mortgage lenders?

Post by unclescrooge »

Having bought 20 homes, and gone through the refinance process 26 times, I'd say the best rates/fees have been through bank of America.

Shocking, I know!
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Kenster1
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Re: Best home mortgage lenders?

Post by Kenster1 »

FinTruth wrote:Penfed on the other hand was a total nightmare, I am surprised by the recommendations here. I opened a HELOC with them that kept getting delayed, and they kept asking me for the exact same document (a payoff letter) over and over and over. No matter how many times I sent them the document, they would ask for it again. It was constant frustration till the end, including the title company that tried to close the loan which complained to me about how difficult they are to deal with. The title company said they had never ever seen anything like Penfed. They also had to mail Penfed a check to close the line because they were told Penfed would not accept a wire transfer...
I have heard similar stories about some Credit Unions like Penfed aren't always the easiest to work with - and with antiquated processes and systems.
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whodidntante
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Re: Best home mortgage lenders?

Post by whodidntante »

These days most banks and credit unions post their best rates on their websites, usually accessible in a couple of clicks. Mortals can actually get those rates.

I have used banks, credit unions, and mortgage brokers. The credit union was the worst experience in terms of customer service. They were hard to get a hold of and made it an agonizing piece by piece process, and they closed the deal later than promised for no obvious reason. The bank was the smoothest, but that particular bank was aquired. The mortgage broker seemed slimy but did a reasonable job.
Snapper
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Re: Best home mortgage lenders?

Post by Snapper »

+1 for Provident Lending, if you have really good credit. Great Prices and Service but thier niche is good credit.
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