Are large local banks less likely to give great mortgage rates to borrows with great credit scores?

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I’ve been shopping for a low interest rate (30 year fixed). I have excellent credit but it doesn’t seem to help me much when I go into large local banks. It seems like they just run the basic numbers to make sure I qualify for a conforming loan. They then tell me their printed rate on their website. My experience with smaller mortgage companies is that they collect more information and they have quoted lower rates.

Is this typical?

I initially went to a mortgage broker for a preapproval. I had to sign all sorts of paperwork. Decided to go to the bank today and found out I could get a mortgage loan with a 4.8% rate with .625 points. Can I forget about the mortgage broker and stick with quote the bank gave me? or do I need to stick with the broker? Also, is that a good rate the bank gave me?

6 Comments
  1. Reply
    idea2005
    February 20, 2011 at 1:55 am

    You are best off securing a great mortgage from a Credit Union or a Community Bank.

  2. Reply
    sassy2
    February 20, 2011 at 2:48 am

    Go with the bank. you do not owe that first person anything.

  3. Reply
    Nani N
    February 20, 2011 at 3:36 am

    Which ever one you want. I went directly to the banks and looked online etc and then went with one. The bank will guide you through what you need to do, also call up a local lawyer and say you are buying a house and they wil also guide you on the process. Hope this helps.

    check bankrate.com, ditech.com, gmac etc
    I found i knew more than some brokers!

  4. Reply
    Writer_B
    February 20, 2011 at 3:56 am

    You’re probably under no obligation to the mortgage broker, unless something you signed says otherwise. However, if you’ve paid them a fee, you probably won’t get a refund.

    Why not call the mortgage broker and tell them, “Hey, my bank just offered me 4.8% with .625 points. I’m thinking about signing up with them. Can you do better?”

    And maybe they can. If they do, you’ll save thousands. If not, you can go with the bank.

    Don’t forget that a good mortgage broker checks many, many banks to find the best rate, not just one or two. That doesn’t mean you can’t get yourself a good deal, though.

  5. Reply
    broccoli brain
    February 20, 2011 at 4:12 am

    You do not owe the mortgage broker any loyalty. The rate is very good from the bank. The lender with the best rate is not always the best place to get your loan. Compare the Good Faith estimate side by side from both lenders before you make your final decision. You will be comparing apples to apples and can not only see who has the best rate but who also will charge fewer fees. Good Luck!

  6. Reply
    Bedford S
    February 20, 2011 at 4:58 am

    If that is a 30 year mortgage rate bank gave you is great. Low interest and very little points. Investigate further with you bank if there is any hidden fees like origination fee. If not take bank offer and forget about broker.

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