what is the best way to shop around for a home loan?

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we are buying a new home in orange county ca, & we have just 1 month to close & this is the first time for us..the builder is willing to give 20k incentives if i go with his lender ,but he is giving a higher interest rate..Does any body know of a good mortgage brokers in the orange county ,ca area

I live in CT and would like to purchase a house soon since it’s the market for buyer but I only work part time since I’m attending school. I do have good credit though, in the 700 ranges. about 1400 credit cards bills left to pay off. I don’t know if this is great enough to qualify us for a good rate. My husband has great credit and his income is not bad, but he’s not make six figures. Please help, what is the best step to take on this? Thanks in advance.

  1. Reply
    February 6, 2011 at 3:34 am

    We went with Quicken Loans and were very happy with them. We found them online, but a representative came to our home to have us sign the paperwork for the closing. We would definitely go with them again in the future.

  2. Reply
    Philly Broker
    February 6, 2011 at 4:23 am

    Be careful with any online lender for a purchase transaction. Quicken loans may be fine for a refi, but I’d think twice about if for a purchase….there’s just too many variables.

    Regarding the builder’s lender – how much higher is his rate versus other lenders? How about if he gives you $ 10k or $ 5k, how does that affect the rate? Are the incentives towards upgrades or towards down payment and/or closing costs or perhaps a combo of all? If a credit towards closing – do you need the money?

    Also, here’s some general info when comparing lenders:
    1. Always make sure you are comparing the same product – eg, 30 yr fixed rate vs. 30 yr fixed rate

    2. Always compare using the same down payment scenario – eg, 0% , 5%, 10% down, etc.

    3. Always compare with same purchase price

    4. Always compare using same timeframe to close – 30, 45, 60 days, etc.

    5. Always compare rates paying 0 discount points and 0 origination fee. Ask what their “par rate” is.

    These 5 steps sound basic, but you’d be surprised how many borrowers think A lender was better than B lender, but not realizing they were correctly comparing the numbers.

    So, if you skip any of the above five steps, you will not get a true “apples to apples” comparison, and the rate could be different.

  3. Reply
    February 6, 2011 at 4:42 am

    If your husband has good credit and a good job, and you have a good credit score also, use both of your names/income. You don’t have the typical scenario I see here where people are married and one partner has horrible credit, so they only use one person to buy the house. Having your part time income will only help things. If you had a credit score of 500, that might be a deal breaker, but since you are in the 700s you should be fine! $ 1400 in credit debt isn’t too bad unless your close to the limits on the cards you have.
    Use both of your names/credit to get a house.

  4. Reply
    Martin S
    February 6, 2011 at 5:14 am

    I can help with your mortgage!

    I am a mortgage broker. If I can be of service, please let me know!

    Martin Smith

    Precision Funding
    877-238-6324 Ext 704
    877-238-6324 FAX

  5. Reply
    chad b
    February 6, 2011 at 5:52 am

    You should put whoever on the loan that allows you to get the best rate as long as qualifies based on the income compared to your total bills of the people you put on the loan.

    email me with any future information.

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