Financing in 07302>Question Details

Pearlyn Chri…, Home Buyer in Brooklyn, NY

Is it better to go with a bank like Wells Fargo or a direct lender like Pinnacle Mortgage.?

Asked by Pearlyn Christian-kutwal, Brooklyn, NY Wed Jul 13, 2011

Mortgage question - who should I work with and is it safe to go with a direct lender?

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The truth is you can get the "best deal", "highest approval amount", and also "royally screwed" from any type of lending source - a mortgage broker, a mortgage banker, a bank that has a mortgage division, a credit union, etc. There isn't one "type" of loan originator that will always be better than another.

Explore at least 3 options, and preferably at least 1 mortgage broker, 1 mortgage loan officer who works for a bank, and also one that would work at a smaller direct mortgage lender (not a broker, and not a bank, just a mortgage lender who arranges loans and sells them afterwards - usually to the banks)... it wouldn't be a bad idea if you had the time to interview up to 6. That way you can get a feel for how each does business, because not every mortgage broker is the same as another mortgage broker, etc.

You'll want to ask what the pre-approval process entails and how long it takes. Will the underwriter who will be allowing your loan to close be the person reviewing your file as part of that process? Will it just be the loan officer reviewing your information? Will they even ask you for documentation?

You'll also want to ask what types of programs they offer, and once your documentation has been thoroughly examined you'd want to get what options would then apply to you, as well as ask what your loan officer thinks would be the best loan program for your situation.

You'll want to ask what type of fees & costs you could expect to incur along the way (credit report, earnest money deposit, home inspection, appraisal fee, closing costs, etc.), how much those costs are estimated to be, and when they are expected to be paid (at the time the service is performed, at closing, etc).

You'll also want to ask what type of loan terms can they offer you if you were to lock in your interest rate today.

You should also ask when & how they will be available - are you someone who likes to discuss things after the normal work hours on the phone? In person on a Saturday? Through email?

There are more variables to think of, some will be important to you and others will not, however I truly believe that you will have a feeling inside of you of pure comfort when you have found the loan officer who will be the perfect fit. You will leave the conversation having a full understanding of the road ahead and what is expected of you, as well as you'll feel the loan officer has left no stone unturned when going over your situation.
0 votes Thank Flag Link Thu Jul 14, 2011
You are welcome Pearlyn - yes for .125% in interest rate I would certainly stick to who has been giving you good service and who you are already approved with.
0 votes Thank Flag Link Thu Jul 14, 2011
Personally I would shop them both and find out who is more competitive on their closing costs and rates and ultimately who are YOU going to feel more comfortable working with??!?
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0 votes Thank Flag Link Thu Jul 14, 2011
Thanks everyone for the great responses!!
I did some more research on pinnacle mortgage and found that they are not part of the Better Business Bureau…

The bank has been working very closely with me and diligently, but the rates are a different. Its between the lender who is giving me 4.5% and a 4.625 from the bank. For better security of mind and servicing of the life of the loan I would stay with a bank. I appreciate your candid and very helpful feedback!!
0 votes Thank Flag Link Thu Jul 14, 2011
One of the considerations that you don't hear much about is the Loan Servicing:

Wells Fargo (World Saving) is faily high on my list (I hope they stay there) but they keep their loans and Service them. This means that four months after your Escrow closes, you don't get a call from some guy in Florida tell you that they bought the loan and you will now send your payment to such-and-such address. This is particularly important when you have a question or a problem.

When a loan is sold, it usually "bundled" with 99 other loans, (often, less than AAA loans) that is why they are sold. My experience is that they are all treated like B loans and you get service to match.

And if, down the road, you needed a Loan Modification....

So, this might be a question for your Loan Officer; "Do you keep your Loans, or do you Bundle and Sell them?"

Good luck and may God bless
0 votes Thank Flag Link Thu Jul 14, 2011
You should work with a lender and person you trust - and make that a real live "go to" resource. Then depending on the product that fits your needs, particular lenders may be a better fit.

It doesn't really matter until it matters greatly - when you hit a bump, and in today's market, the road is very very bumpy, working with and having direct access to the very best resources can be the difference between success and failure. I believe this to my bones.

And work with a mortgage rep that does business in the state you are buying in because rules/regs can vary. I had a transaction recently where my buyer used a lender I respect, but insisted on using a rep near his workplace out of state. We came down to the wire and a difference between the way business is done here and there caused unnecessary anxiety.

I've got some very good lenders I work with here in NJ if you need suggestions.

Jeanne Feenick
Unwavering Commitment to Service
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0 votes Thank Flag Link Thu Jul 14, 2011
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