Home Buying in Yuba City>Question Details

Dmedeiros, Home Buyer in Yuba City, CA

I am buying a house for the first time and would like to know if I should go to a couple diffrent lenders to look for the best deals?

Asked by Dmedeiros, Yuba City, CA Sat Sep 10, 2011

I have seen one lender. The house I am buying is $100,000.00. They figured everything into the payment and came up with a $789.00 payment a month. I was wondering if I tried somewhere else would I possibly get a better deal.

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Great question!

In today's lending environment, I believe all lenders must be extremely competitive in fees and rates. One factor that various from one institution to another is the speed at which you can get your loan approved and funded to meet your contractual agreements.

You will primarily have 2 options: you can either work with a mortgage broker or with a direct lender (mortgage banker). There are benefits to working with both, but you should certainly work the person/company you feel most comfortable with. Your real estate agent can give you insight into their experience working with either brokers or bankers.

Here is the Consumer website to see if your mortgage loan originator is licensed: http://www.nmlsconsumeraccess.org/

Since you are a first time buyer, a good mortgage professional should be able to answer all your up-front questions and concerns related to the home buying process. (credit requirements, cash to close, fees, timelines, appraisal process, working with short sales and bank-owned properties). You will know right away if you're dealing with someone you can put your confidence in.

One thing worth noting: you typically cannot lock in your mortgage rate until you find a property and have an accepted offer. Therefore, rates change daily and you will already be "in the game" and in the process by the time you can lock your rate. Since there is so much work to do in the Pre-Qualification/ Pre-Approval stage of the process, you will get a preview of the level of service and attention you (and your Realtor) can expect to receive during the actual escrow.

I hope this helps someone out there.


1 vote Thank Flag Link Mon Sep 12, 2011
Be sure to check that you are being offered the best interest rate you can get. Your credit worthiness can make a difference to this rate. Rates this morning were quoted to me at 4.25% for Conventional 30 year fixed. FHA was 4.125% and VA was at 4.25%. Also be sure to ask for any additional costs such as points, doc fees etc.

Yes, make comparisons. Your agent should be able to help guide you to reputable local lenders. Costs can vary.
1 vote Thank Flag Link Mon Sep 12, 2011
Comparison shopping is normal. Consumers compare most tangible products and services before they purchase. Even in the grocery store or when they buy gas.

You are expected to shop comparability on large expenditures as well. The decision process seems more complicated as the cost of the product or service grows. The downside is that having a choice requires making another decision. A decision that you may not be 100% sure is right.

Maybe or maybe not a better deal appears elsewhere after making your comparisons or maybe you just feel better about your first choice. Or maybe the comparisons leave you more confused than when you started.
1 vote Thank Flag Link Mon Sep 12, 2011
Jim Walker, Real Estate Pro in Carmichael, CA
You should work with a reputable loan agent, as well as a reputable realtor. Your realtor will know the best option for you. If your agent is a part-time agent, you may want to reconsider your choice. Otherwise, if you are comfortable with their ability to negotiate for you, then you should be comfortable with their selection of a loan agent. Stay away from on-line loab brokers as they typically charge extra hidden fees...
1 vote Thank Flag Link Sun Sep 11, 2011
I think if you are happy with the terms of the loan, the rate, and the related fees, then go with it. Just read your loan note and understand it. It is your responsibility, and you will learn a lot the first time!
1 vote Thank Flag Link Sat Sep 10, 2011
I agree with Mike C. It all depends on how deep into the transaction you are. These are steps that are typically taken prior to executing a contract. How long is your loan contingency period? Has your current lender already ordered an appraisal? Thus, costing you money already. It might be best at this point to explore the buy down option. Are you dealing with a bank or a broker? What kind of point structure are you paying for loan origination? You could always ask for a time extension if you feel the loan terms are completely out of line, but it is a dangerous play.
0 votes Thank Flag Link Wed Sep 21, 2011
It depends how far into the deal and what type of property. If you go to a different lender it might be considered out of the contract if it was already past the contingency period and a foreclosure home. My advice would be to see if you could buy down the rate. The untimate would of been to have the agnet get some closing costs covered and it would help considerable.

Good luck,

Mike Capobianco
0 votes Thank Flag Link Tue Sep 20, 2011
As a buyer/customer you are dealing from a position of strength. Use it to your fullest.
0 votes Thank Flag Link Sat Sep 17, 2011
Can't hurt to shop around.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Tue Sep 13, 2011
Yes I would talk to few lenders in this situation.So you may shopping around to get the best deal. Thank you.Good luck.
0 votes Thank Flag Link Tue Sep 13, 2011
I think you can do better. Check with a couple more mortgage brokers and two major banks. Good luck.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Tue Sep 13, 2011
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