Author Topic: 30 yr fixed from builders preferred lender  (Read 4293 times)

0 Members and 1 Guest are viewing this topic.

Offline vikas420

  • Tourist
  • *
  • Thanks
  • -Given: 5
  • -Received: 2
  • Posts: 22
30 yr fixed from builders preferred lender
« on: December 06, 2012, 12:20:23 AM »
Being offerd a 30 year fixed rate of 3.5% with $1000 credit toward escrow/title fees and no loan origination charges( loan ~480k)...my credit score is in the 800 vicinity ...considerations are,

1. Since Wells Fargo  is builders preferred lender.. I am assuming the closing will be a little smother\on time and I will end up saving a lot  of hassle for myself.

2. Estimates from outside lenders appear to be in the same ballpark .. The interest rate offered is pretty much the same (or 3.5%).. The lender credit is either on par or a couple of hundred more.

3. Heard pretty bad reviews for amerisave and provident.. So hesitant of going with them even with higher lender credits.


Thoughts / suggestions are welcome .

Offline qwerty

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2739
  • -Received: 1837
  • Posts: 7989
Re: 30 yr fixed from builders preferred lender
« Reply #1 on: December 06, 2012, 12:42:37 AM »
I would go with the in house lender. That way it is less of a headache. Especially since the pricing is the same.  Have you considered getting a rate of 3.75%, you can get a credit of about 6000 and cover all your closing costs. The 3.75 rate would give you a higher payment of about 60/month so the break even would be about 7.5 years. On an after tax basis, the net payment is about 45, so the break even is closer to 11 years. Most people sell their home after about 7 years. Just something to consider

The following member(s) thanked this post:


Offline vikas420

  • Tourist
  • *
  • Thanks
  • -Given: 5
  • -Received: 2
  • Posts: 22
Re: 30 yr fixed from builders preferred lender
« Reply #2 on: December 06, 2012, 07:55:30 AM »
Good point qwerty.

Offline irvinehomeowner

  • The Unicorn Hunter
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2661
  • -Received: 4017
  • Posts: 23074
  • 3CWG
Re: 30 yr fixed from builders preferred lender
« Reply #3 on: December 06, 2012, 09:02:53 AM »
Unless the in-house lender is giving you a really bad product, I agree with qwerty, it's easier to go with them.

I think it was USC who said those online brokers are better for refis, not purchases.

Good luck.
Once you go 3-car garage... your junk can never go back.
3CWG: 3-Car Wide Garage
FCB: Foreign Cash Buyer
I recommend:
www.irvinerealtorsite.com
member: Soylent Green Is People (loans/refis)

The following member(s) thanked this post:


Offline USCTrojanCPA

  • Your CPA Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2611
  • -Received: 2102
  • Posts: 10307
  • Gender: Male
Re: 30 yr fixed from builders preferred lender
« Reply #4 on: December 06, 2012, 09:38:57 AM »
Unless the in-house lender is giving you a really bad product, I agree with qwerty, it's easier to go with them.

I think it was USC who said those online brokers are better for refis, not purchases.

Good luck.
Yeah, I would only recommend using one of those online lenders for a refi just because of how slow they are.  For you refi, there isn't a rush to get it done....there is a tight deadline to get it done on a purchase. 

Vikas, you can opt to take the credit and slightly higher rate and then refi with one of those online lenders 3 months after you close (I doubt rates will do much in that time).  If rates stay around the same area, you'll be able to get a 3.50% refi with no cost from one of those online lenders....then you'll have your cake and be eating it too.
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!
Have license, will travel!

The following member(s) thanked this post:


Offline OCgasman

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 90
  • -Received: 237
  • Posts: 648
Re: 30 yr fixed from builders preferred lender
« Reply #5 on: December 06, 2012, 01:29:05 PM »
Agree with everyone.  Go with house lender.  3.5% is a competitive rate and no headaches.

Offline IrvineRealtor

  • Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 892
  • -Received: 585
  • Posts: 1046
  • Gender: Male
    • Current Real Estate Listings
Re: 30 yr fixed from builders preferred lender
« Reply #6 on: December 06, 2012, 01:33:48 PM »
Surprised nobody has suggested SGIP on here yet. He's consistently shown competitive rates and superior service.  I recommend him highly.

-IrvineRealtor
Wag more. Bark less.

Offline irvinehomeowner

  • The Unicorn Hunter
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2661
  • -Received: 4017
  • Posts: 23074
  • 3CWG
Re: 30 yr fixed from builders preferred lender
« Reply #7 on: December 06, 2012, 02:16:23 PM »
Surprised nobody has suggested SGIP on here yet. He's consistently shown competitive rates and superior service.  I recommend him highly.

-IrvineRealtor
SGIP *is* highly recommended... I just don't recall anyone do a new home loan with him. From what I've read it's not really the outside broker who is the issue with the builders... it's the builders because you are not using their preferred lender.
Once you go 3-car garage... your junk can never go back.
3CWG: 3-Car Wide Garage
FCB: Foreign Cash Buyer
I recommend:
www.irvinerealtorsite.com
member: Soylent Green Is People (loans/refis)

Offline SoCal

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1802
  • -Received: 1488
  • Posts: 7121
Re: 30 yr fixed from builders preferred lender
« Reply #8 on: December 06, 2012, 04:12:00 PM »
Surprised nobody has suggested SGIP on here yet. He's consistently shown competitive rates and superior service.  I recommend him highly.

-IrvineRealtor

When I checked a few months, he was temporarily unable to wheel & deal with no specific date given when things would resume. Maybe that's why only other options are being discussed. Just a thought.

Offline irvine123searching

  • Tourist
  • *
  • Thanks
  • -Given: 11
  • -Received: 7
  • Posts: 81
Re: 30 yr fixed from builders preferred lender
« Reply #9 on: December 06, 2012, 06:37:08 PM »
How about the home insurance, do you guys use the Wells Fargo Insurance?

Offline USCTrojanCPA

  • Your CPA Realtor
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2611
  • -Received: 2102
  • Posts: 10307
  • Gender: Male
Re: 30 yr fixed from builders preferred lender
« Reply #10 on: December 06, 2012, 06:48:53 PM »
How about the home insurance, do you guys use the Wells Fargo Insurance?
I'd recommend 3...your auto insurance carrier, Mercury, and Ameriprise via Costco.
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!
Have license, will travel!

Offline Soylent Green Is People

  • Abiding Dude. Housing focused NMLS Licensed
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1050
  • -Received: 1227
  • Posts: 2632
  • Gender: Male
  • Isaiah 58: 6-11
Re: 30 yr fixed from builders preferred lender
« Reply #11 on: December 07, 2012, 05:20:02 PM »
Unless the builders lender has dropped the ball on pricing, you're not going to fund a gigantic difference in terms between what they're going to offer and what their competitors will.  Outside lenders may say they've got smokin' deals, but I contend the only thing that's actually smokin' is the crack they've been using. Mortgages today are really just boiled down to FN/FR/FHA and not much else in the way of a competitive difference in rate or program. If you've got a FICO issue or paying cash and want to refinance out your $$$ post closing, if you have limited or no credit, if something might come up that doesn't fit in the bankers box, then outside lenders remain an option. That buyer profile is rare in the new construction arena but it does occur.

As to insurance, they're as squeezed for staff as mortgage companies are. When you get insurance, just like when you shop for a mortgage, be certain to get someone who will pick up the phone when you need them. My own insurance is with AAA right now, but if you're buying a home and AAA is providing the insurance, it's neigh impossible to get a swift policy produced from them when you need it. They may have good rates, but they are sloooow in getting the deal done accurately. About 30 days out from closing, get your insurance agent on the horn with your lender. Don't expect them to communicate on their own. You've got to make it rain in cases like this. They will get a correct, up to date, ready to go policy in place so that you can avoid the last second run arounds that happen when you buy a new home. 
My .02c

SGIP

Offline irvine123searching

  • Tourist
  • *
  • Thanks
  • -Given: 11
  • -Received: 7
  • Posts: 81
Re: 30 yr fixed from builders preferred lender
« Reply #12 on: December 10, 2012, 12:28:31 PM »
Thanks, SGIP.
I guess I should just go with the Wells Fargo Insurance for this year to avoid any possible delay.
I can change it next year.

Offline dealcatcher

  • Yearning for 949 / 714
  • **
  • Thanks
  • -Given: 44
  • -Received: 28
  • Posts: 180
Re: 30 yr fixed from builders preferred lender
« Reply #13 on: January 13, 2013, 08:49:59 PM »
What rates are you guys getting right now on a 30yr fixed (no points, no closing costs)?
-Jumbo rate?
-Conforming rate?

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters


Recent Posts

Re: How soon until Bitcoin crashes? by fatduck
[Yesterday at 11:24:14 PM]


Re: coronavirus by morekaos
[Yesterday at 10:38:23 PM]


Re: How soon until Bitcoin crashes? by morekaos
[Yesterday at 09:15:16 PM]


Re: How soon until Bitcoin crashes? by Liar Loan
[Yesterday at 09:03:57 PM]


Re: coronavirus by morekaos
[Yesterday at 08:35:18 PM]

SimplePortal 2.3.7 © 2008-2021, SimplePortal