Foreclosure in Folsom>Question Details

Ann, Home Buyer in Folsom, CA

what do you think about eloan? are they reputable? rates, service, etc..?.

Asked by Ann, Folsom, CA Sat Nov 24, 2007

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I agree with Deborah. Your question is very timely...Just within the last few weeks I started working with a client who had been communicating with both E-loan and Quicken prior to being referred to me. My client was giving me the details of her "pre-qualification" and things just did not add up. Sure enough, the numbers that she had been given were incomplete. The payment they quoted her did not include any taxes or insurance...and they had not discussed any closing costs with my client. In fact she had no idea what closing costs even were! They also wanted her to pay $500 BEFORE they gave her a good faith estimate. My client is a first time buyer, and I am so glad she opted to start working with a local loan officer who gave her the entire picture.

I have had past clients use these online loan brokers...with the other question you asked, I imagine you are not a first time buyer and have a bit more knowledge with regard to what to expect when you obtain a home loan. If you know what you are looking at, and are considering E-loan, I would also work with a local loan officer or two so you have a basis for comparison.

My experiences with online brokers tell me they do not fully inform the consumer. May not be true in all cases, but I like buyers to be well informed before they sign on the dotted line.
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3 votes Thank Flag Link Sat Nov 24, 2007
Erin Stumpf, Real Estate Pro in Sacramento, CA
I have heard a few good reports, and many poor reports. (It it weren't considered rude to shout, I would have put 'many' in all caps.) I would recommend finding a good local reputable loan officer with whom you can develop a strong rapport. This personal relationship, coupled with knowledge and skill is the route I recommend.
3 votes Thank Flag Link Sat Nov 24, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
Internet lenders and local lenders both depend on word of mouth (i.e., reputation ) to get their referral business.

One big difference between a lccal business that depends almost completely on referrals from past customers and any business that depends mainly on advertising (and its internet presence) is that the referral based business will die if it does not provide good service at competitive cost.

Some businesses that constantly refresh their new customer base through advertising think they can afford to lose a few customers and missed referral opportunities. That attitude may also be damaging to the advertising based business in the very long run.

This may help explain why Carrie, Patti, Erin and Deborah feel their customers have had better experiences with local mortgage brokers that thrive on personal referrals.
2 votes Thank Flag Link Sat Nov 24, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
I completely agree with Erin. I've had buyers that tried working with online lenders, only to be surprised with hidden fees or not being told the "whole picture" of what it will cost to obtain a loan. I always advise my clients to get good faith estimates from at least 2 lenders and make a decision based on who they felt the most comfortable. Sometimes the lender that may have slightly higher closing costs is the one that will provide the best customer service and get the buyer the appropriate loan.

Definitely do your research and make sure to ask a lot of questions. In the current market, the loan products that are available today, may not be available tomorrow and you want to be represented by a lender that can provide the right loan to fit your needs.

If you need any referrals for lenders, I know a few that are very reputable.
2 votes Thank Flag Link Sat Nov 24, 2007
Ann, I think that you are best served, when dealing with something so important as a home loan, to work with someone you can see, feel and touch personally. Someone who has some accountability- someone "with skin on". You want to know you have someone comes to you recommended- will care that you are taken care of, and relys on referrals and repeat business for their livelyhood. Don't use "on line" companies. I have heard nothing but horror stories about the outcome.

This is too important and far reaching of a decision. Go with someone local!

Patti Phillips
2 votes Thank Flag Link Sat Nov 24, 2007
Good company with some good press and some not so good. I think they are more for the savy or knowledgeable investor and/or buyer. As an investor and consumer, I still prefer my own local lender who is there to provide service and obtain the best available rate for me.
1 vote Thank Flag Link Sun Nov 25, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
My feeling is that lenders like E-Loan work best for experienced buyers/investors. However....I am an experienced investor and I still work with a local lender. I have yet to find an on-line resource to give me a better rate. Good luck - it;s a great time to buy!
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1 vote Thank Flag Link Sat Nov 24, 2007
Cindi Hagley…, Real Estate Pro in San Ramon, CA
I tried doing research online and thought this was the wya to go when I bought my last house in 2002. Turns out they tried to stick me with a 3-yr prepayment penalty and we had to redo the loan at the signing table. Almost destroyed my buy, but the selelr was cool and allowed me to get anoter loan - added another 2 weeks to the process.
1 vote Thank Flag Link Sat Nov 24, 2007
I'll try and stay within Trulia community guidelines here and not use "expletives deleted" for my description of on-line lenders. If I'm the listing agent and I see a pre-qual or pre-approval letter from any internet based lender I will counter the offer stating they must make another application to a "terrestrial" lender!! I want to be able to go sit on someone's desk if there is an issue. I want to be able to have someone accountable to our community if they mess up.
I once had an internet based lender actually tell me, after too many calls to him unreturned, "I have no idea when you'll have loan documents"!! I told him, "You sir, are either the dumbest lender I've ever met or the MOST honest!" He was the former! The client who finally got the loan through this company ended up with the wrong loan, huge pre-payment penalty (YSP working here!) and has since lost there home through foreclosure. I don't trust any of them. 'Nuff Said?
1 vote Thank Flag Link Sat Nov 24, 2007
Great answer Ginger...however just to clarify for Ann's sake, in CA it is not customary to have an "attorney review" during escrow, so that piece may not necessarily apply out here.

Again Ann, please make sure you satisfy yourself with regard to what your loan officer is truly setting you up with (fees, rates, etc.), whether that person is local or in cyber space...
Web Reference:
1 vote Thank Flag Link Sat Nov 24, 2007
Erin Stumpf, Real Estate Pro in Sacramento, CA
I haven't used E-loan but I have used a comparable internet lender. The first time it was a terrific process. The second time, after the credit crunch, it was disastrous.
I think internet lenders are a good source to check rates. Many local lenders will actually lower their rates if you can bring a bona fide rate quote from another lender. They are also a good source for niche products - unusual loans that a local bank can't offer, or for which they are not competitive.
If you are able to get the same rates, and same loan structure, from your local lender, than hands down go with the local lender. IMHO.
The biggest problem that I have seen with internet lenders is that if they don't do a lot of business in your area, they don't have attorneys that have worked with them before and this can cause delays. Many times their documentation does not comply with state requirements and the local attorney does not know the internet bank's documentation. It can be fixed but it causes delays.
1 vote Thank Flag Link Sat Nov 24, 2007
It's true that using an internet-based lending source can save save the borrower a few hundred, maybe a $1000 in closing costs, and their offered rates could also be slightly lower.....but since the borrower only pays the closing costs and gets the rate IF the deal closes, the perceived savings are just that, a perception, in many cases....

Ann, would you perform your own surgery on yourself to save some $$, or use a local clinic when your condition requires a more skilled surgeon? I already know the answer to this question....

There are so many details involved in getting a loan successfully to the finish line, many related to the chosen property and type of sale, it's not just about having sufficient fico scores, income and closing funds...

Using a local pro is like hiring a specialist for your surgery....sure, it might cost a little more but it could easily mean the difference between a successful closing and one that falls apart....

Lastly, before deciding to hire ANY lending source, do some research! For internet lenders, make sure you look up their complaints on Consumer Affairs...for local, licensed loan officers, check out the CA DRE and/or NMLS...

Let me know if you'd any more information along these lines!

Best regards, Jeff Marr
0 votes Thank Flag Link Sat Aug 25, 2012
I agree with a lot that has been said here. I handled loans for more then six years and I would always try to pay attention to the online competition. I would often times submit requests for quotes to see what they would offer, and often find that there were fees, that a typical consumer would not know to look for. First, I would never pay an up front application fee. A reputable lender wont charge for this. Also,be aware of the rates are that are being offered and know that sometimes a lender can get paid what we call rebates when they give you a higher rate. If you know what the rates are, you will know what is fair. Truthfully, I would suggest getting more then one good faith estimate from your local lenders UP FRONT before committing to someone, and don't be afraid to let them know you want to have more then one option and you will look around. This will help them remain competitve. Locally is better and you can then deal with directly which often times makes the process smoother. There shouldn't be a huge difference between what one lender and another rates between different brokerages only differ maybe a .25 percent most of the time. If you have good credit also check with your current bank to see what they would offer you. With an established relationship sometimes they can offer you a better deal. Feel free to call me if you are looking for a few reliable sources here in Folsom. 916-337-4049
0 votes Thank Flag Link Tue Dec 1, 2009
Any larger company is likely to be as good as the person you get. Is your loan officer there helpful, and answering your questions? Did you get a good faith estimate? Are they in touch with you to make sure all your documents are submitted?

I've had clients who've had great experiences with eLoan and other online loan companies, and I have clients who've had lousy experiences.

If you wanted me to refer some of the lenders I use so you can compare, please feel free to give me a call at (530) 672-9160. I can't get referral fees from lenders by law, so this is strictly so you can have the info.

0 votes Thank Flag Link Mon Jan 7, 2008
I have used them in the past. They helped me do a 7 day COE!!!!
0 votes Thank Flag Link Tue Jan 1, 2008
i agree with Cindi, in that I think internet lenders are best for the experienced borrower/investor. As a Seller, I try to steer my buyers away from internet lenders, due to a bad experience with a buyer whose internet loan was delayed.
In my particular case, when I sought a niche loan product, which by default is for a more experienced borrower, they were able to deliver and price much better than my local lenders. Obviously, I negotiated the loan in entirety and read ALL documentation upfront before they even got an application fee. It went great. The second time around - it was disastrous. Things had shifted in the credit market and they were not on top of this. Finally, I went to a local lender and did the loan.
The only time I have ever been burned on a loan i.e. misled with undisclosed fees and penalties: it was a local lender. Since we had previously done business, I trusted him. He delayed the loan until I was jammed and pretty much had to close. He did not give me the documentation until loan closing, and it was a shock. This would never have happened with any other lender - I would have been all over this. It was the one time I did not due my homework and I paid dearly for it. (So did he in future business and referrals.)
The moral of the story: No matter who the lender, do your homework. Get a good faith estimate. Read your loan docs and really understand the structure.
0 votes Thank Flag Link Sun Nov 25, 2007
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