Choosing the correct lender

[thomasdan]

Hi Everyone,

So my wife and I have been workng really hard the last couple years to get all of our ducks line up properly before we get into a mortgage loan.

we recently became debt free.
ive raise my credit score from 575 to about 700 in the last couple years. My wife is about 765.
have a good downpayment, but not great*( still have 6 more month to save, thats when our apartment lease ends)

We both have a stable job.

My question.

we've done lots of research online regarding lenders,mortgages and etc.(anything regarding buying a house)

For anyone with personal experiece...

what are the things that we need to look for or even ask questions when choosing the correct lender and realtor?

any tips from personal experiece that you can't find online that was helpful in making a decision?

we both are 1st time home buyers.

Thank you everyone

[disneysteve]

We've chosen our mortgage companies purely based on rate and fees. The past couple of refis were with Quicken and they've been excellent. I'd highly recommend them - as long as their rate is the best in your situation.

[ua_guy]

We chose a lender based on the interest rate and low fees. On our last purchase we went with JP Morgan Chase.

If we have our choice, we will never do business with them ever again, and would not recommend their products or services to anyone, even enemies. And I'm very familiar with the home buying process.

My recommendation would be to utilize a local bank or credit union provided you can get a competitive rate.

[HappySaver]

We've always used local banks. It's nice to be able to walk in, in person, and meet with someone. Assuming their rates/fees are competitive, of course.

[Jerry91]

You should ask the lender about the interest rate on the mortgage. You should also clarify as to how much you will have to pay in discount and origination points. Apart from this, you should also clarify about closing costs, prepayment penalty, documents required, down payment, etc.

[kork13]

The only real consideration needs to be interest rate & fees. At least right now, your lender will sell the mortgage note to Freddie Mac (quasi-Federal agency) within 4-6 months of the origination of the loan, so solvency of the lender isn't even really much of a factor. Get the best terms you can, and go for it.

As far as home buying tips... Try to minimize your closing costs, because they are fees on top of the cost of your home purchase. If you plan on owning the house for a long time (8-10 years or more), purchasing points against your mortgage can be worth the upfront cost. And most importantly: shop around! Check the large national banks, your local & regional banks, and especially any credit unions with which you qualify for membership. Find a low rate with low closing costs. Good luck on your home purchase! Build up your emergency fund to include your home, because stuff ALWAYS breaks. lol

[disneysteve]

We've chosen our mortgage companies purely based on rate and fees.

We chose a lender based on the interest rate and low fees.

You should ask the lender about the interest rate on the mortgage. You should also clarify as to how much you will have to pay in discount and origination points. Apart from this, you should also clarify about closing costs, prepayment penalty, documents required, down payment, etc.

The only real consideration needs to be interest rate & fees.

So just to summarize, choose based on interest rate and fees.

HappySaver raised an interesting point about using a local bank and being able to go in and do business in person. That is absolutely the last thing I'd want to do so it is really personal preference. With Quicken, I love that I can do everything by email and web and never have to leave my house. In fact, closing was even done at our kitchen table - they came to us. I'd never pick a company that required me to go meet with them in person.

[HappySaver]

So just to summarize, choose based on interest rate and fees.

HappySaver raised an interesting point about using a local bank and being able to go in and do business in person. That is absolutely the last thing I'd want to do so it is really personal preference. With Quicken, I love that I can do everything by email and web and never have to leave my house. In fact, closing was even done at our kitchen table - they came to us. I'd never pick a company that required me to go meet with them in person.

I think states differ on closings. Here it's the attorney who decides the closing location, not the bank. So closings happen in attorneys' offices or the registry of deeds if the attorney doesn't use an office. It makes no difference what bank you use.

[disneysteve]

I think states differ on closings. Here it's the attorney who decides the closing location, not the bank. So closings happen in attorneys' offices or the registry of deeds if the attorney doesn't use an office. It makes no difference what bank you use.

Maybe Quicken just works with title companies that offer the in-home option. Previously, we did have to go to the office of the title company. It was only the last time they offered to do it at our house but I thought that was a great service. The entire process took about 15 minutes.

[thomasdan]

Is the orignation point included in the closing cost? or is this an additional fee we pay the lender on top of whatever we owe for closing cost?

thanks for the info. All this information is new to us.

any advice would be appreciated.
thanks