Financing in Northville>Question Details

Caca, Home Buyer in Ann Arbor, MI

is it safe to use a out of state mortgage company when purchasing a house?

Asked by Caca, Ann Arbor, MI Mon Jul 11, 2011

I am in the process of negociating a house. I see a list of morgage companies on this website that provides lower APR and interest but they may not be in my state. Is it safe to use an out of state mortgage company? I believe everything can be done remotely but I am a little concerned about how can I trust their service? Please let me know your experience and refer me one that has low APR and interest if possible. Thanks.

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7
Spare yourself -- read the fine print.
If you really want to pay a ton of points and fees to get low APR, write me a check right now and we'll burn it right in front of you.

Pair yourself up with someone local who knows what they're doing.
APR and such is so overstated - there is more to a loan than that.

Get yourself a low interest rate, low fees, and someone who is willing to walk you thru the process so you are comfortable with the results. Don't fall prey to the online lenders.

If you need a good referral, let me know.
1 vote Thank Flag Link Mon Jul 11, 2011
I also look at it this way:

With the economy today, many people are struggling to make ends meet.
When it comes to getting a loan and the lender getting a commission, I want to think that by choosing someone local, you are putting money back into the local economy for their commission, which they can spend back into the community and area in which you're buying in.

Given that, you have the opportunity to help build the area up, possibly helping revitalize business, communities, etc. Why give that money away to someone out of state to spend (someone is always going to earn a commission for doing your loan) when it could be spent here?

Makes sense to me to do it this way, anyway.
0 votes Thank Flag Link Tue Jul 12, 2011
There may be reason not to trust the service of an out of state lender. Not because of anything intentionally done wrong but due to inexperience in the area. An example: In New Jersey real estate transfer fees are paid by the seller but when buyers use out of state lenders (often from PA) the good faith estimate of closing costs often has that as a charge to the buyer. If the lender is inexperienced (even if they are licensed) in your state there will be a lot more problems getting to the settlement table.
Web Reference: http://www.naeba.org
0 votes Thank Flag Link Tue Jul 12, 2011
Andy nailed it ... I think the best option for any home buyer anywhere is to use a REGIONAL bank specific to that area. National and global banks I am not a fan of for home loans.
0 votes Thank Flag Link Tue Jul 12, 2011
It's better to work with a referral from your agent. Your agent will suggest lenders who they have an alliance with and respond quickly if problems come up or addendums need to be signed and submitted to underwriters. Out of state or online lenders have no reason to go the extra mile because they get clients through online advertising not from referrals from doing a good job. (I may hear about that statement but in my experience it's true)
0 votes Thank Flag Link Tue Jul 12, 2011
The fact that they may be out of state is not an issue. But alot of times these super low APR lenders are going to force you to use their title company to close or tack on fees in some other fashion to make up the low APR. This may raise the cost of using them to you in the long run.

I always feel when buying a home you should use a local lender for the mere fact that you need a local contact.
Any good local lender should be able to match very closely the APR's promised on these other websites. The lending process has changed drastically in the past 3 years and you really should use a local lender that can guide you step by step.
I would be happy to refer you a great local lender. Please contact me if you wish at greg.morad@remax.net.
I live in Northville as well.
0 votes Thank Flag Link Tue Jul 12, 2011
Caca:

Good Evening!! It would depend on what type of mortgage you are applying for. Advertised rates are usually not the rate you end up with. I would check around to local area lenders before I would consider going out of state. What you want to compare are the costs the lenders charge up front. As a Realtor I always recommend my client use a local lender I find it faster, easier and more convenient.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Mon Jul 11, 2011
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