30 yr fixed from builders preferred lender

vikas420

New member
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 .
 
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
 
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.
 
irvinehomeowner said:
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.
 
Surprised nobody has suggested SGIP on here yet. He's consistently shown competitive rates and superior service.  I recommend him highly.

-IrvineRealtor
 
IrvineRealtor said:
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.
 
IrvineRealtor said:
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.
 
irvine123searching said:
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.
 
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. 
 
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.
 
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