Home Buying in 75093>Question Details

Rich, Home Seller in 75032

Approaching a bank in another state for a home loan

Asked by Rich, 75032 Thu May 20, 2010

Hello! I live and work in Texas. I want to buy a house in Texas. Can I appraoach a bank in another state to process my home loan?

Help the community by answering this question:


Lenders should be aware of actual closing costs and procedures in Texas, not just where they have an office. Many out of state lenders don't understand the practices here and use other words to describe terms local lenders understand. This confusion often leads to delays while documents are corrected.
Eventually they all get it right (with some help from local escrow officers and Realtors), but the pain may not be worth the deal you find.

Be aware that rates quoted on-line or seen on TV many times have 2 points taken off in order to give you a better interest rate. On a $150k loan that $3,000 in cash can really hurt when you pay it at closing.
You'll also find that unless the closing is table-funded, out of state lenders have their own schedule for funding, which can also cause last minute frustration.

Rates from Texas-based lenders are very competitive with the boiler room lenders (who really only want 740+ borrowers and no other credit issues). Look carefully at the TIL to see the APR of all lenders you consider. Those points will show up in the APR. Also the new GFE may be difficult for you to interpret (it's difficult for loan officers to understand, too), but compare only the fees that the lender controls, not the often underpriced insurance and taxes.

And, brokers must show their back-end (YSP) as a fee to you, while banks don't show you how much they make when they sell your loan. So, it looks like banks are cheaper than brokers. This is deceptive, especially since they usually make more on the back end than brokers do. .

Local people know the real estate taxes and local homeowner insurance rates.
Another confusion is over title insurance. The geniuses who invented the new GFE put the owner title policy as a charge to the buyer, but the seller most often pays this.
Web Reference: http://www.SumnerRealty.com
1 vote Thank Flag Link Sun May 30, 2010
You will have better results working with a lender in the state you are purchasing the home in as they will be familiar with specific state requirements.
0 votes Thank Flag Link Thu Dec 26, 2013
Cannot believe you would want to, considering the state of the real estate market in other states. Yours is one of the healthiest real estate markets in the country. Your loan will most certainly process faster and with more direct control if the loan processor and Underwriter are both local. So long as your loan officer is licensed to work in Texas, you're good to use whatever mortgage banker or mortgage broker you choose. The website below is a good resource and includes info on TEXAS-ONLY loan programs of which you may not be aware.

Have a blessed day!
0 votes Thank Flag Link Fri Jun 11, 2010
Hi Rich:

Another fine bank is http://www.everbank.com

Its a great bank to get to know along with just home loans you can buy and invest in foreign currencies,
bullion etc.

Another fine bank is http://www.hsbc.com

I hope you had a chance to call http://www.penfed.org or the traditional local banks such as Citi, Chase, BofA.

Hope all are going to have a wonderful long weekend.
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Sun May 30, 2010
Hey Rich,

You are free to use anyone you wish. Comparing the rates and fees of both your Realtor and Lender are important. Many Realtors and lenders are willing to work at a deep discount. Just remember the old addages "You Get What You Pay For" and "Buyer Beware". Consider the following:

The location of a home has much to do with quality of life, education, costs of travel (depending on where you work, etc). The quality and condition of a home are just a critical for many reasons (budgetary concerns utlities, upkeep, etc.) Retaining a professional Realtor that demonstrates a committment to your success by providing advise versus information and knows how to help you match needs with reality is critical.

A mortgage is no less important. It is usually the largest investment and budget item that a family ever takes on. This monthly payment and overall debt structure will potentially have an impact on your ability to save for retirement, college education, vacations and very well may have a significant impact over time on a marriage itself. Retaining a professional mortgage advisor that matches needs with realtiy is critical.

Bottomline, the event we call buying a home is best accomplished with professional advice for most. Everyone in this business can quote a rate or show you a list of homes and tell you what you want to hear. I advise that whoever you choose is committed to learning your needs, providing advice, on time closings with clarity/transparency and working seemlessly with your TEAM of advisors- nothing is done in a vacuum. Please don't hesitate to call if you have additional questions. I wish you success.
0 votes Thank Flag Link Fri May 21, 2010
You are welcome to use any lender you want, as long as they are licensed in the state where you are buying. I always recommend that home buyers compare rates/fees for at least 2 lenders and then decide who they want to use. I also recommend that you find someone that you feel comfortable with that is competent and can get the job done.

In your case, I would also ask a new potential lender how quickly they can close a transaction. You should ask your Realtor for assistance in finding a new lender, getting the extension, and getting your house sold.

Good luck!
Melissa Hailey
Coldwell Banker Jane Henry Realtors
North Texas Top Team, Realtors
0 votes Thank Flag Link Fri May 21, 2010
You can, but the lender needs to be licensed to do loans in Texas. Big lenders do this, Quick Loans does this. Is there a particular reason you want to do this? It might or might not make sense.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Thu May 20, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
Hi Rich:

Sure you can, a bank like Citi, BofA, Well Fargo, PenFed, Chase are licensed all over the country.

Go to http://www.penfed.org for starters and goodluck.

Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Thu May 20, 2010
They need be licensed it is however not recommend.

I have seen it where the loan officer based in California with a problem at closing... it delayed the closing DUE TO time difference & etc's by 8 hours. They had a moving truck packed on loaded had to pay the movers for all the delays and etc.

Nice have a loan officer where the closing is ALTHOUGH DFW is a huge area , Dallas mortgage brokers do drive to Plano for closings or wherever.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Thu May 20, 2010
As long as the bank/lender is licensed in the state of Texas. But, make sure you shop around for a mortgage.

Web Reference: http://www.moneysafe.com
0 votes Thank Flag Link Thu May 20, 2010
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