By Admin on Feb 22, 2010 in Renting & Real Estate
zherizz asked:
Besides the usual banks citi, BofA, wells fargo,etc. Any ideas what other companies offer a better rate? Most of these banks I’ve mentioned have points and I’ve noticed their rates are higher than some smaller companies. problem is I;m not sure what small companies to trust. We want to buy a home in the Bay Area (California) and need help to find a great mortgage company to deal with.
Besides the usual banks citi, BofA, wells fargo,etc. Any ideas what other companies offer a better rate? Most of these banks I’ve mentioned have points and I’ve noticed their rates are higher than some smaller companies. problem is I;m not sure what small companies to trust. We want to buy a home in the Bay Area (California) and need help to find a great mortgage company to deal with.
I hate to approach this question so shamelessly, but I believe you should work with my bank!
It’s really more about the individual loan officer than the bank. In today’s lending environment, banks, lenders, brokers, etc. essentially have the same products to offer with similar pricing. It’s really up to the loan officer to set the pricing structure (rates & fees). Personally, I like to see what seller concessions can be worked into the purchase contract, so we can use that money to get you either the lowest possible rate, the lowest possible fees, or a healthy combo of both.
As far as large vs. small, brokers and even the mid-sized lenders are at a great disadvantage due to the fact that they are “third party originators” and the guidelines are a little bit tougher for them. It’s not really fair, but that’s the way it is. Banks use their own money to fund loans, thus the underwriters have a greater degree of latitude to make sensible decisions. Brokers don’t use any of their own money, and lenders typically fund on warehouse lines, which are like huge revolving credit lines. However, the largest banks (the ones you mentioned among others) typically have salaried loan officers under a more structured program, so you will get the standard rate/fee offer until you start haggling. Do you really want to have to haggle with your loan officer?
If you’re looking for a great loan officer with a great bank, email me and I’d love the opportunity to work with you! I’m happy to answer any questions you may have.
Charles
charles_edington | Feb 24, 2010 | Reply