When trying to get a house loan what is best? a mortgage company or a Bank(federal union)?

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  1. Reply
    April 30, 2011 at 1:30 am

    You should shop several places. Avoid online lenders. Find someone good who is local and you can meet face to face.

    Try a couple mortgage brokers, one or two banks, and even a credit union in your area. Get a few competing offers on rates and fees by requesting a Good-Faith Estimate of Closing Costs. They may vary by quite a bit.

  2. Reply
    April 30, 2011 at 1:58 am

    I would go through a Mortgage Broker because they only have to do one credit check and they usually have access to 70-100 different lenders, including banks. And all you have to do is give them your information and what you would like in a mortgage, then they take that information and match it with a lender. My husband and I just currently did this and we found it to be a lot less stressful because our broker handled everything for us. Good Luck

  3. Reply
    April 30, 2011 at 1:59 am

    Credit union Is always best – then a Bank – then a mortgage company. The credit union offers good interest rates but are not flexible. Banks offer fair interest rate and are more flexible but don’t know how to talk to people that don’t know all the loop holes. Mortgage companies are very flexible and offer so much help that you would wonder if other people really want your business.

    If you know what a good mortgage is and have good credit, the Credit Union is the way to go. If you can find a banker you trust and have good credit, then go to the bank. If you are loss in the sauce and don’t know your donkey from a hole in the ground go to a mortgage company.

  4. Reply
    April 30, 2011 at 2:15 am

    Check with a minimum of three and up to seven lenders, making sure you include a mix of brokers, bankers, and credit unions. Applying online with one of the large national lenders is a good thing if your credit is decent. (Countrywide, Wells Fargo, or the like.)

    Rates are not set in stone, so be upfront with everyone that you’re shopping around and don’t be shy about sharing information about offers from one lender with another lender. Remember, the lender makes more money by getting you into a more expensive loan.

    The yield spread, which determines how much money the originator makes, is something you won’t see or hear about. But the higher cost loan you sign up for, the higher the yield spread, and the more money the originator makes. By letting everyone know you’re shopping around, some lenders will tell you about a lower rate and accept a lower yield spread rather than have you walk your loan down the street.

    Also, Lender A may have a trick up his sleeve that Lender B doesn’t know about. Once Lender B tries the trick, Lender B may be able to beat Lender A. For example, if Lender A ran your loan through Fannie Mae’s system and got what is called an expanded approval, but Lender B ran it through Freddie Mac’s system and got an approve, of course lender B will have a better loan. But if you tell Lender A that Lender B did better using Freddie Mac, Lender A can try it and may come back with a better rate.

    Finally, remember it’s not all about the rate, but also the fees that you need to pay.

    Good luck!

  5. Reply
    April 30, 2011 at 2:34 am

    I’m a mortgage broker – so I guess I am biased. We usually can offer the same or better than the bank can offer everyone except it’s very best clients (Lots of money in bank). Credit Unions usually beat us by a very small margin.

    But, our service is great and offers much more flexibility than the other two. I just got a $ 700K loan from a bank that couldn’t do it after stringing the client along for a month. During that time, the client’s score dropped and the offer I was able to give him was worse than if he had come to me from the start.

    Happens all the time and this is where flexibility helps. if you have a cut and dry situation, great credit, good income for the debt, stable earnings, good savings, nice down payment, etc… then try the credit union. If anything at all is not perfect – see a broker.

    Even if you end up paying 1/8% higher than the CU could give you, you’re looking at a negligible difference.

  6. Reply
    April 30, 2011 at 3:05 am

    I know of a great mortgage company. If you are interested just email me. I would list it on here but I would just get reported for advertising.

  7. Reply
    Donna L. T
    April 30, 2011 at 4:04 am

    Depends on your credit score, actually your FICO (fair issac score) however remember mortgage companys are only finding the lenders for you and if you use that broker you will have that cost also. Brokers can usually find lenders that are more in the creative financing end of home purchase. Many realtors are skeptical due to the number of clients that have not been able to get the financing as promised by some brokers.They will get you a pre-qualifying letter instead of a pre-approval. Be Careful. Good Luck

  8. Reply
    April 30, 2011 at 4:20 am

    If you don’t have a good relationship with a bank where you can walk in, sit down and chat with the Vice President you are almost always better with a mortgage broker.

    This individual has many underwriters that has agreed to allow him to use their loan programs. They just could have the same bank or credit union as an underwriter of their loans as the one that you are attempting to get a loan through.

    Now if your good ole bank or credit union that you have been banking with for the last few years can not accommodate your requirements, special needs or other variables that might pop up you will have to go to another bank, credit union or financial institution to start anew. This new company will need the same thing a credit report and we all know how inquires pile up one after the other.

    So you will be in this vicious circle going from one financial institution at a never ending pace.

    A mortgage broker on the other had can run one credit report and use the same credit report for as many times as necessary until they can find a lender willing to do your loan, even with special needs.

    So in my opinion do a one stop shopping for your loan. Look in the telephone book, find a local mortgage broker, tell them your requirements and let him do his thing. They understand any special problems that might be on your credit report, income proof and other things that might get a disapproval other places.

    They are knowledgable and have the experience to know who will accept your particular loan needs.

    You see they don’t get paid unless you are pleased. They please you by getting the best loan available based on your credit scores and credit report.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

  9. Reply
    mortgage help
    April 30, 2011 at 4:54 am

    Credit union can have very low rates, but their products are limited. The mortgage company will find you a better deal than the bank 9 times out of 10. The mortgage company has that bank’s products available PLUS many other banks.

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