Financing in 07410>Question Details

James Patti, Other/Just Looking in 07410

Where would you go if you have a great Fico score (both over 800) and money for a down payment?

Asked by James Patti, 07410 Sun May 27, 2012

A mortgage broker seems like a middle man that is not necessary if I can walk into a bank and get a loan. I was wondering if a big bank can offer a cheaper mortgages than say a smaller local bank. What do you think?

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Rates vary greatly from a 640 to a 740 FICO. But when you get to the higher 700's and into the 800's, there won't be much variation. In regards to a mortgage broker versus a bank - most rates will be competitive as they fluctuate around prime. By shopping around you may find small variances within 1/8 to maybe 1/4 percent but probably not much more than that.

Many people used to focus on banks because mortgage brokers would sell off the notes immediately. Now, many banks will also sell off some of their notes. Ask the bank or credit union if they'll shelf your note or sell it off. If they sell it off, they are theoretically similiar to a mortgage broker. This will allow you to just focus on the best interest rate, regardless of who the lender is. Good Luck!

Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg #4
San Antonio, TX 78248

'Serving all your Real Estate Needs'
2 votes Thank Flag Link Sun May 27, 2012
If you are both W2 earners and both of you have job stability - in the eyes of the lender, you can go anywhere.

I am not a fan of the big banks, and have had my buyers encounter last minute closing snags with the closing departments of big banks. I can recount several instances where the snag was an issue with the property, appraisal, etc, and not related to the buyer qualifications. Solving issues at "big banks" can be outrageously frustrating. When there are not glitches, big banks can be great. As soon as there is a hiccup (which may be unrelated to your excellent qualifications) - nightmares can unravel. No one is empowered to do anything, or apply common sense. It's impossible to reach a decision maker, and those you can reach have no authority. So, why would anyone use a big bank? They might be able to offer you the best rate. In particular, inquire about direct payments from a checking account. If a big bank offers you the best rate, know that all could go smoothly and be ready if it doesn't.

Even if "big bank" services your loan, it doesn't mean they will continue to own the loan. i.e. Big bank funds the loan at closing with their funds, sells the loan post-closing to an investor, but continues to service the loan. Because you make your payment to Big Bank, doesn't mean they own the note.

I favor small banks. They will likely sell your loan, and Big Bank may even become the servicer. You have no control over who services your loan, unless you search for a loan which is going to be retained as a portfolio loan. Few people have that as a criteria. Most borrowers are concerned with the loan terms and who will process, underwrite and fund the loan. If they sell it later, so be it.

I favor small bank because reaching a decision maker is easier. If everything goes smoothly, great. If there is a hiccup, the loan officer, processor, underwriter, closer and manager are not in disconnected cities and unknown entities to each other.

When shopping rates, inquire about everything. Will you be required to pay the appraisal fee upfront at the time of appraisal? How much is? Don't just get a simple interest rate quote. Get a complete breakdown before you select a lender.

All else equal - go with small bank. Rates better with big bank....go with big bank since you have a better shot at smooth closing with your excellent credit and financial. (If you are self employed, on your job short term, or have recently changed jobs, you fell off the pedestal a notch regardless of how much money you have in the bank or your outstanding credit score.)

Many small banks can also broker the loan and shop outside their own institution.
2 votes Thank Flag Link Mon May 28, 2012
Deborah Madey, Real Estate Pro in Brick, NJ
come to PNC Mortgage, where we have a diversified line of products and are portfolio lenders, for conventional jumbo and super conforming conventional loans. We have the option to offer low rates and have more products than a lot other banks; example, we have a conventional portfolio loan with 3% downpayment, no PMI and PNC gives $1200 towards closing cost; must have 660 credit score, $500 of their own funds and income to debt ratio of less than 40%. I can be reached 24/7 on my cell 908-578-1413.

We offer FHA, VA loans as well as conventional in 50 states.

Thank you for inquiring about financing and hoping to hear from you soon.

Bianca D'Alessio,
loan originator
408648 NMLS ID
1 vote Thank Flag Link Tue May 29, 2012
3% down and no PMI? That is interesting... I will be shopping for my next mortgage in two to three weeks. I will call you then.
Thank you,
Flag Tue May 29, 2012
Banks have been known to be more strict with their process so I always refer my clients to:
Richard Noury
Jersey Mortgage Company
20 Commerce Drive
Suite 340
Cranford, NJ 07016
Office: 908.603.1110
Fax: 908.592.0253
Licensed Mortgage Banker-New Jersey Department of Banking and Insurance
0 votes Thank Flag Link Tue May 29, 2012
Where should you go? You should call Me right now 201-895-1768
& I'll give you a few options. Rather than babble on here about who & why call me & I'll give you some options, referrals and answers.
Dianna Ivanov
0 votes Thank Flag Link Tue May 29, 2012
James, I have been originating loans since 1997, and I will quickly discuss the 3 channels of obtaining your loan.

BROKER- from 1997-2000 I worked as a broker and was able to shop different rates/fees at various banks, the only issue is the delivery to the consumer could be inefficient from time to time b/c you were relying on the end lender to approve and fund the mortgage on their timetable. Not a bad choice, but could have potential snags.

BIG BANK--from 2000-2007 I originated loans for one of the biggest banks in the country. This process was very efficient, but at the end of the day, I was offering the consumer the BIG BANK'S rates. There was no ability to shop the interest rate for my consumer. Keep in mind it costs a lot of money for BIG BANK commercials & advertising:)

COORESPONDENT BANK--2007- present, from my professional opionion, this gives you the best of both worlds. This avenue offers you the ability to work with a licensed mortgage lender, who can shop the interest rate for you, but have the delegated authority to underwrite and fund your loan themselves. This should provide you with the most competitive rates/fees, and an efficient way to settle your loan.

Hope that helped. Best of luck to you! Feel free to contact me with any questions.

Joseph S. Cordova NMLS# 146855
Evesham Mortgage, LLC
22 South Maple Avenue
Marlton, NJ 08053
office: (856) 985-9944 ext. 103
direct fax: (206) 333-0946
cell: (856) 304-2381
0 votes Thank Flag Link Mon May 28, 2012
Barbara says:

"Above all, however, do NOT call anyone you find on the Internet or send out an application on the Internet, the closing costs can be vastly different and you will open yourself up to all sorts of spamming

-- call me to get started and let's find you a house! I would be happy to help you with your real estate needs!"

Does that include YOU as well Barbara? You paid Trulia for a "PRO" account to receive ONLINE leads and you told the borrower " call me to get started ". Do you mean everyone except you?
0 votes Thank Flag Link Mon May 28, 2012
I have to agree with Deborah and Barbara in regards to the large banks. Most of my clients that were going to get a mortgage from the larger banks had to end up going to a smaller lender or mortgage broker in order to close. The appraisals have been a major issue in most cases.

As you appear to have great credit, you can likely get a cheaper mortgage either way. The important thing is you want to work with someone who can guarantee that you close.
0 votes Thank Flag Link Mon May 28, 2012
I disagree about the big versus small. It has been my experience (except for Wells Fargo, call Terry Stevens at 201-559-4111) that your mortgae application will be lost in the shuffle of the big banks (steer very clear of two of the largest!) the moderate-sized savings banks such as Hudson City, Bogota Savings and Valley National offer excellent rates that are very competitive with some of the mortgage companies around. Coldwell Banker also offers its own mortgage services which have terrific rates and are available to pre-approve you seven days a week/

Above all, however, do NOT call anyone you find on the Internet or send out an application on the Internet, the closing costs can be vastly different and you will open yourself up to all sorts of spamming -- call me to get started and let's find you a house! I would be happy to help you with your real estate needs!
0 votes Thank Flag Link Mon May 28, 2012
I suggest Joe Verdechhio with Wells Fargo.
He has done great work for many of my Buyers
His number is 201 481-8190
0 votes Thank Flag Link Mon May 28, 2012
When walking into a small local lending institute, you might find some time, a better rate, but, I would say that If you use a mortgage broker, and that broker does his/her job correctly, than he/she can shop for you for the best rate for that day among many landing institutes, the most important action you can take is to use the right mortgage person, who, in return, will shop for the best possible rate, and if you'll be loooking to sell/buy in the Fair Lawn area, please email or call joe Kapon.
Web Reference:
0 votes Thank Flag Link Sun May 27, 2012
Usually I would suggest a mortgage company but many clients have also gone to "their" bank for a mortgage. I suggest you inquire with yours (without doing any sitdowns & trading of info first) just to see what their rates are. If they are comparable to what the other banks are offering then by all means go for it! And when your ready, if you wish to buy a home down at the Jersey Shore OR surrounding areas, please do not hesitate to contact me!

Good Luck, Helen
0 votes Thank Flag Link Sun May 27, 2012
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