Financing in The Woodlands>Question Details

Halley S., Home Buyer in New York, NY

How do I find the best deal on a mortgage?

Asked by Halley S., New York, NY Mon Apr 23, 2007

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8
Dear Halley,

Speak with a lender and get a Good Faith Estimate. You, or your agent, can then fax this good faith estimate around to multiple lenders to obtain their version of the same loan. When evaluating these it's important to have a agent or lender go over the costs that the title company charges verses the cost that the lender charges. The lender has no control over title company charges and may estimate high or low on these charges, thereby making the bottom line look better or worse, when in reality they are the same.

Look for items like table fees, funding fees, underwriting fees, credit report fees, and discount points. These are some of the fees paid directly to your lender.

Chris Tesch
RE/MAX Bryan-College Station
Web Reference: http://www.ChrisTesch.com
3 votes Thank Flag Link Sun Jul 15, 2007
One bit of advice is to ask the first lender that you allow to pull your credit to pre-agree to send you a copy of your credit report and then use that copy to send to other lenders that you want to compare rates with. If you choose a lender other than the one that pulled your original credit report, they will have to pull one of their own, but that will reduce the amount of credit checks to two rather than having several pulls when you shop around. If you want a recommendation, for a great mortage pro to buy a home in The Woodlands, email me. I do not make any money if you use my recommendation.
0 votes Thank Flag Link Sat Oct 25, 2008
The only way to compare a variety of mortgages is to insist on the APR (Annualized Percentage Rate) in writing from each of the mortgage lenders. By federal law, the APR must include all points, fees, and so forth so that you can really compare which is the best deal for you.

If you decide to pay points, and that is not usually a good idea, you are pre-paying interest. Be sure that you will be staying in this house long enough to make paying interest upfront a good idea for you. There is a break even point - years out in the loan -- where you would you have been better off with the higher interest rate before that date and better off having paid the discount points after that date. If you are working with a good mortgage broker, they should be able to calculate that for you.

One of your mortgage comparisons should be with Coldwell Banker Mortgage, which you can access by calling any Coldwell Banker Real Estate office. They are very competitive (in fact they will usually try to beat any other offer you have) and they have money to loan. Feel free to contact me if you have any other questions. Best regards,
0 votes Thank Flag Link Fri Oct 24, 2008
Remember, the best deal (lowest rates and points are not always the best deal) The Only Good Loan is a Closed Loan! In todays mortgage world you must qualify for the loan program first. The higher your credit score (720 plus) and the bigger down payment or greater Equity (25% or more down payment or refi at least 75% to 70% loan to value) the better the term on the loan will be.

Bill Challas
408-390-7013
0 votes Thank Flag Link Fri Oct 24, 2008
Halley, you need local connections. Crosstalk with the real estate people here and on other sites to find out who you trust then ask them for a recommendation.
0 votes Thank Flag Link Fri Oct 24, 2008
Good Day Halley,

To find the best deal on a mortgage I agree with Chris in that you speak with a few lenders and get Good Faith Estimates (GFE) from each that you may want to do business with. You can always get referrals from friends that have closed loans with them or Realtors. I wouldn't necessarily show the GFE's to each other so you have honest, fair estimates based on that particular lender. It will also depend on your credit - if you know that you have great credit, a low debt to income ratio you can pretty much pick and choose and you may want to speak with a bank or lender that knows you can go anywhere - keep in mind they'll know it and want the best loans because they are usually the easiest :) Now, if your credit is "spotty" a little and there might be an "issue" a Mortgage broker will probably be your best bet because they can "shop" the loan to many different lenders. Keep in mind, while you're doing all this to not be spending money or opening any cards or anything like that which may affect your credit adversely, your credit score is so very vital! Just in case the latter is your case (hopefully not), there is a book you may want to read called "Your Credit Score." I read it and it is an easy read packed full of information you can use to help correct/fix your scores. I hope this has helped!
Web Reference: http://www.michelleallen.us
0 votes Thank Flag Link Tue May 27, 2008
You need to get several quotes from lenders! I can help you! Visit my website: http://www.TexasRealEstateMommies.com
0 votes Thank Flag Link Mon Apr 23, 2007
It's a good idea to shop around with at least two different lenders. Some lenders are what's called 'Mortgage Brokers', which means they can offer several different loan options because they are basically like a loan salesman. Other lenders are what's called 'Mortgage Bankers', which means they are loaning you their own money. Each type of lender will have different % down requirements or necessary paperwork. These are all things to ask about when you're doing your comparison shopping.
0 votes Thank Flag Link Mon Apr 23, 2007
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