Loan shopping
- Thread starter snjnk
- Start date
Congrats! My recommendation....Let a mortgage broker do the shopping for you. They have experience in the market and know who's offering the best rates for different houses at different times. I have a guy I trust. My own brother does mortgages and my broker beats him every time. His name is Dan Buben. Email is dan@danbuben.com. You can look him up on Yelp. Tell him Billy referred you. Good luck!
paperboyNC
New member
Zillow mortgage has helped me find good loans.
usctrojancpa
Well-known member
SGIP is your man.
woodburyowner
Well-known member
zillow mortgage and make sure you understand how to compare apples to apples. Most companies try get you in with rate and points, but watch out for the junk fees. It's all about the net price you pay. Also make sure to reach out to SGIP for a quote.
woodburyowner
Well-known member
zillow mortgage and make sure you understand how to compare apples to apples. Most companies try get you in with rate and points, but watch out for the junk fees and other inflated fees. It's all about the net price you pay. Also make sure to reach out to SGIP for a quote.
sgip
Well-known member
If you are not planning to lock through November, now is not the time to loan shop. Why November? If the builder says October, they are usually right - "usually: however is not "always" so plan on at least a 30 day lock past the delivery date. A lender who is competitive in July might not be in September. Pricing and bank margins change daily, just as stocks do. Finding a lender right now when you aren't ready to lock, is using up valuable energy that could be better spent deciding if you want wood floors or window blinds.
If you are planning to take a long term lock, Banks are about the only resource you can get a reliable rate quote for more than a 90 day rate lock. Bsnks will discount pricing if you move funds over to them either prior to closing (Wells Fargo) or post funding cash (Citi, Chase, BofA, etc.). If the rate for a 30 year fixed in July is 4.25%, expect to lock in a 4.50% rate that will deliver in November. All long term locks have some kind of renegotiation (aka "float down") option but never to "market rates". Know this as you consider a long term lock - no one knows where rates will be tomorrow, next week, next month, or next year. Don't get rushed into a long term lock because the Loan Officer likes to say "well you know... rates are going UP so you better hurry!" Blegh. Take your time before committing. Look at all of your options such as if you lock on a fixed rate and you want an ARM rate, can you switch? Details....details.
You are under no obligation to close your loan with the builders lender. That said, you want to play nice with the builder sales office as they can be of great help if there are any construction issues. The builder will likely let you switch lenders no later than 60 days prior to closing. That's the best time to begin your mortgage shopping.
Note that I'm not saying "rate shopping" but "mortgage shopping". Sure.... you might get a great rate from ABC Capital out of Dubuque Iowa, but if ABC Capital can't tell the difference between a Detached and an Attached Condo, what a 442 is compared to a Certificate of Completion, or if Mello Roos is a tax or a fee, your chances of getting that rate delivered slim considerably. Got an HOA? Of course you do... it's Irvine! Ever see a non-builder proficient lender try and process a project approval? It's not a pretty sight. Every lender is going to be about .125 in rate or $2,000 in fee from each other. The key then is will you close as expected? If it means another $500 in costs to know your lender understands new construction, it's money well spent.
Good luck with your home financing search, and be sure to update this thread.
My .02c
SGIP
If you are planning to take a long term lock, Banks are about the only resource you can get a reliable rate quote for more than a 90 day rate lock. Bsnks will discount pricing if you move funds over to them either prior to closing (Wells Fargo) or post funding cash (Citi, Chase, BofA, etc.). If the rate for a 30 year fixed in July is 4.25%, expect to lock in a 4.50% rate that will deliver in November. All long term locks have some kind of renegotiation (aka "float down") option but never to "market rates". Know this as you consider a long term lock - no one knows where rates will be tomorrow, next week, next month, or next year. Don't get rushed into a long term lock because the Loan Officer likes to say "well you know... rates are going UP so you better hurry!" Blegh. Take your time before committing. Look at all of your options such as if you lock on a fixed rate and you want an ARM rate, can you switch? Details....details.
You are under no obligation to close your loan with the builders lender. That said, you want to play nice with the builder sales office as they can be of great help if there are any construction issues. The builder will likely let you switch lenders no later than 60 days prior to closing. That's the best time to begin your mortgage shopping.
Note that I'm not saying "rate shopping" but "mortgage shopping". Sure.... you might get a great rate from ABC Capital out of Dubuque Iowa, but if ABC Capital can't tell the difference between a Detached and an Attached Condo, what a 442 is compared to a Certificate of Completion, or if Mello Roos is a tax or a fee, your chances of getting that rate delivered slim considerably. Got an HOA? Of course you do... it's Irvine! Ever see a non-builder proficient lender try and process a project approval? It's not a pretty sight. Every lender is going to be about .125 in rate or $2,000 in fee from each other. The key then is will you close as expected? If it means another $500 in costs to know your lender understands new construction, it's money well spent.
Good luck with your home financing search, and be sure to update this thread.
My .02c
SGIP