Home Owner Question

[dhunter]

For a lender isit better to go through a direct lender (ie: Wells Fargo or BofA) or a mortgage broker that can shop around for the lowest rate? Or does it not matter? What are the pros and cons of each? We have a real estate agent picked out, just need to make a decision on the lender soon. Thanks.

[dhunter]

not one person here at the mall works in the real estate business or owns a home???

[Jimmy K]

u are probably best off using bankrate.com or some other site that compares rates of lenders, screw paying fees to the scheister mortgage brokers. usually smaller banks have better rates, so look at those first.

[dhunter]

thanks jimmy

i figured that using a broker would cost more because they are the middle man.

[pwherr]

I was waiting to see if anyone else responded.I would stay away from brokers.High fees for doing what you can do yourself.IMO.I owned 5 houses at one time once and I always just used a local bank.

[pwherr]

Also look out for PMI or early payment penalties.They will get you.
Get a 30 year fixed and pay extra every month.You can save tons on interest.

[ZoomVT]

paul is right.
if you do banking with a specific institution, then contact them first, they will appreciate the business and work with you. my bank gave a me a sweet deal on mine, reducing my rate, and they actually service it themselves.
yes, if you dont have 20% to put down, then dont go higher than a 80-10; do not go on a 90% because PMI is the worst thing to do. Also, do not escrow your taxes, i like to keep my money until i need to pay, otherwise you are giving them free interest on your money.

good luck!

[BigdaddyQH]

The more "middlemen" tht you can eliminate, the more money you are going to save. I would also do my hmework when it came to bank loans. I would investigate the financial institution as throughly as possible. Washington Mutual was the largerst financial institution in the country. If they can belly up, any of them can. The smaller the institution, the more problem you may have. First, they may "sell" your mortgage to another institution. This is a common prective. Next, if a small institution runs into trouble, it has a much smaller chance of getting bailed out. No amount of time is too much to spend shopping for the best deal you can get.

[dhunter]

Thanks guys!

I already bank with Wells...so I'm thinking about going with them.

We're probably going to do a FHA loan...where we put 3% down. I was told that this loan requires a PMI. Is there anyway around this? 20% down is pretty much out of the question. We're 1st time homebuyers and don't have 80k laying around.

Will definitely be doing a 30yr fixed. Staying away from interest only or variable rate loans. That's how so many people got f*cked.

[dhunter]

what about points? good or bad?

it's my understanding that if you pay a point (money up front) your interest will be lower. sounds like you could save money in the long run?

[Romanowski]

u wont see savings unless youre talking 15-20% down

[guzzi]

u aint gonna save anything...just buy...u'll make doe in da lr...

[mark12]

Originally Posted by dhunter

Thanks guys!

I already bank with Wells...so I'm thinking about going with them.

We're probably going to do a FHA loan...where we put 3% down. I was told that this loan requires a PMI. Is there anyway around this? 20% down is pretty much out of the question. We're 1st time homebuyers and don't have 80k laying around.

Will definitely be doing a 30yr fixed. Staying away from interest only or variable rate loans. That's how so many people got f*cked.

Just bought a new house yesterday and used a broker but only because he does business with me and I felt obligated. But paid an extra 1/8 point over what I could have gotten on my own. Then he sold the loan to Wells Fargo. So apparently they are offering a pretty good rate right now.

Went FHA also with 3% and no way around the PMI. If you can get them to finance the initial fee in with the mortgage to save money at closing. If not it will cost you a few extra thousand at closing.

Good luck.

[MightyMike]

I would say that if the house needs some work you might want to keep some money to put into the house after you move in .
Maybe put a bigger chunk on the down payment .
All ways shop around .
Good luck