Mortgage question

[tommymac]

Got a few questions for you homeowners as far as getting started with the application process. my first thing is where or what banks to start with? We deal with citibank and are happy with them however their rates are higher than most ofther banks and have heard they are a PITA to deal with for mortgages. In a local paper they list local banks and their rates and i think wachovia and another bank had the best rates, but have also heard that wells fargo is good too.

Would it be good applying though many banks, I had heard that since they all look up your credit history that can actualy lower your score.

Tom

[RCM78]

Thats true. Having a crdeitor inguire will show up on your credit history. I you have alot of inquiries it is pervieved that you are trying to open several accounts and that will lower your score.

Try to find a mortage co. that will keep the loan. Stay away from brokers and small co's. They will sell your loan quickly and then your stuck with who you get. Sometimes your loan can be sold several times in one year. Turns your account into a nightmare.

We have countrywide. They've been fine. Good rates and they keep the loan.

[Lamnidae]

We have Regions (www.regions.com) but they have lots of local branches.


See if you can find a solid credit union....

[fasternyou929]

Originally Posted by RCM78

Try to find a mortage co. that will keep the loan. Stay away from brokers and small co's. They will sell your loan quickly and then your stuck with who you get. Sometimes your loan can be sold several times in one year. Turns your account into a nightmare.

This is the best piece of advice you will get in this thread.

We used Wells Fargo - they're still very liquid since they didn't participate in all the sub-prime lending, and they have competitive rates. Their loan retention is somewhere north of 95%, if I remember correctly.

Strongly recommend them.

My first mortgage was with a smaller bank, then GMAC mortgage, then somewhere else. All within a year. You never know who to send the damn payment to.

[Cutty72]

Check out credit unions as well, if possible. Generally they will be a little lower rate as well.
Another thing to look at is where you want to live.
In ND there is a lot of "rural" area, and the credit union actually approved me at a higher amount if I purchased in a rural area. Helped me a lot because I actually wanted to get out of the "big city" of Fargo.

As far as worrying about lowering your credit score with checking out many banks, it's no big deal.
If they see a bunch of places pulling your credit within a few days, they know it is probably for some purchase. If you spread it out over a month or two, it will reflect more poorly on your score.

And one last general rule. Make sure after you get an approval, you figure out taxes and insurance, and then figure what your actual monthly payment is, to be sure it's affordable. My experience is that banks will generally approve you an amount that is about 10-15% more than what you actually want to spend as a monthly payment.

Hope that helps.

[Ninjakel]

We have GMAC, never been an issue

['73 H1 Triple]

Originally Posted by RCM78

Thats true. Having a crdeitor inguire will show up on your credit history. I you have alot of inquiries it is pervieved that you are trying to open several accounts and that will lower your score.

Try to find a mortage co. that will keep the loan. Stay away from brokers and small co's. They will sell your loan quickly and then your stuck with who you get. Sometimes your loan can be sold several times in one year. Turns your account into a nightmare.

We have countrywide. They've been fine. Good rates and they keep the loan.

We went wil Harleysville National Bank for our mortgage. They were ony a 1/4 point higher but will service the the mortage for the life of the note. ( meaning if it's sold, it's still them we deal with for the taxes and insurance receipts )

After the fiasco I had with Aurora Loan Services, this was money well spent.
( abbrev version-- third year they had my mortgage, I got reg. letter stated they were purchasing insurance on the house only [ not the contents] for 3x was my full coverage was. I called [ no 800 # listed] and although they agreed it was escrowed, they were still going to purchase the insurance and bill me $1800 for it.
I called my insurance agent, paid $550 for an additional year and faxed them the receipt. I had to wait until State Farm had their money TWICE until it was refunded to me.
I truly hope they went bankrupt )

Originally Posted by Ninjakel

We have GMAC, never been an issue

GMAC had our mortgage sold before we signed on the dotted line. The first sig was for their note, the second was that it was sold and who to pay.