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'
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.
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.
408648 NMLS ID
Jersey Mortgage Company
20 Commerce Drive
Cranford, NJ 07016
Licensed Mortgage Banker-New Jersey Department of Banking and Insurance
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
VIDEO RESOURCES: http://realestatemarbles.com/jscordova/
"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?
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.
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!
Good Luck, Helen