Mortgage Lender

[nisryus]

So we finally looking at houses, since the current 1600 ft is feeling kind of small for us and the kid. Anyone from Austin area who has experience with local independent mortgage lenders, or credit unions? We had Wells Fargo before when the builder we got our house sold our mortgage to them, but want to try local business instead of national banks.

Now I went into our local BoA, which I have been banking for 15 years and I knew people there well. However, when I asked about mortgage, it became all business and the pressure just killed my mood.

My realtor is highly recommended by several friends, and she refers us to a local independent lender. Their rate is 4% for 30 yr fixed, like many other banks.

I tried online by going to LendingTree and boy, i am being spam by those mortgage brokers now. No wonder everyone I knew said online sites suck.

Anyone has any tips or pointers?

 

[highland145]

BOA sucks. That's what I got about them. Fee +++ oriented.

Your realtor has ZERO to do with your rate. Your credit score does.

Ask several local banks or better yet credit unions for a rate. They all will sell your mortgage to a large company the instant that you sign. They just want the origination fee(application).
Try and avoid PMI. If you finance more than 80% of the loan they can add insurance that will cost you (?) $30/month.



Sorry OP but there are other pitfalls that you'll have to ask periodically.


You'll get better answers on weekdays.

 

[Dr. Zaus]

If you are getting a single unit home at less than $417,000 in Travis county then you're really getting a Fannie Mae and Freddie Mac loan. This link shows the required additional rates for having < 20% down.

https://www.fanniemae.com/content/fact_sheet/high-balance-loan-matrix.pdf

Also don't use a Realtor, bunch of scam artists for old people who can't use the internet.

Use RedFin, they provide the same service, but take a much lower commission.

https://www.redfin.com/county/2866/TX/Travis-County/real-estate

You know... unless you like the idea of paying $10,000 so someone can drive you around in their car while talking on a cell phone and lying to you about the value of a property/neighborhood/etc.

 

[nisryus]

Thanks guys.

The houses we been looking at are between $280k to $320k in area around 45 and 620, since we are not rich like everyone here.

My credit score is 740+, so I am fairly confident on getting pre-approval.

When to RBFCU, but the lady told me just go online to start filing a form... when I checked their review, many people reported horrid experience there.. Might try UFCU or Compass Bank next week.

 

[Dr. Zaus]

https://www.redfin.com/city/30818/T...-97.83496041147157&zoomLevel=14&market=austin

 

[nisryus]

Thx Dixy.

Might go see this one..

https://www.redfin.com/TX/Cedar-Park/1221-Boerne-Dr-78613/home/32935262

Bu 8k property tax in 2014. with tax rate of 2.65. Wife might not like it.

Going to look around at Cat Hallow/Brushy Creek areas as well.

 

[FelixDeCat]

Get an ARM loan.

 

[Phoenix86]

Get an ARM loan.

You know, when you're trolling in most threads it just ranges from annoying to stupid. When you're doing it in a financial advice thread you're just a massive asshole.

 

[chimaxi83]

You know, when you're trolling in most threads it just ranges from annoying to stupid. When you're doing it in a financial advice thread you're just a massive asshole.

I don't think people take Mr. YouTube Cop serious around here, do they?

 

[jpiniero]

You know, when you're trolling in most threads it just ranges from annoying to stupid. When you're doing it in a financial advice thread you're just a massive asshole.

There are times where an ARM makes sense if you get a good discount compared to the 30... given that median tenure in the US is roughly 7-10 years. A 7 year ARM might make sense. You have to remember that the amount of people who actually make all of the payments on a mortgage even on a 15 is extremely rare, it's all about the interest rate.

 

[nisryus]

No ARM, we are planning to get a 30 or 15 yr fix rate. Our current home (a 3 bedrooms house) is already paid off after 13 yr (of a 15 yr fix rate mortgage), so we do not have to worry about making payments on both houses. Might even rent or lease the current home once we have the second home.

 

[Phoenix86]

I don't think people take Mr. YouTube Cop serious around here, do they?

I know "we" don't, but I don't know that 130-something posts user knows the trolls vs. people giving genuine advice.

 

[Phoenix86]

There are times where an ARM makes sense if you get a good discount compared to the 30... given that median tenure in the US is roughly 7-10 years. A 7 year ARM might make sense. You have to remember that the amount of people who actually make all of the payments on a mortgage even on a 15 is extremely rare, it's all about the interest rate.

Yes, I know there are times and places for it, like you said extremely rare. Do you think FelixDeCat has enough info to make that suggestion or do you think he's being a raging douche by trolling a thread about someone's largest investment they will ever make? Hint: it's the latter.

 

[FelixDeCat]

lol

 

[FelixDeCat]

yeah

 

[FelixDeCat]

There are times where an ARM makes sense if you get a good discount compared to the 30... given that median tenure in the US is roughly 7-10 years. A 7 year ARM might make sense. You have to remember that the amount of people who actually make all of the payments on a mortgage even on a 15 is extremely rare, it's all about the interest rate.

Exactly.

 

[Dr. Zaus]

Get an ARM loan.

Ironic take on home loans, I get it. Too high brow for most around here ;-).


nisryus: I don't want to be overly personal, but you mentioned "feeling kind of small for us and the kid"; how does that work out in your day-to-day existence?

I'm soon to buy my first house and am trying to make the best decision I can, hearing form someone with experience over time with a family could be very valuable.

 

[nisryus]

Dixy, my 1600 sq ft house is one story and has 3 bedrooms and two baths, perfect for two people and a little kid.. but once the kid gets older (8 yr old+) he/she would wants more space. Day to day wise it is ok, but it is getting cramp as we have more 'junks' collected - mainly kid's stuffs. The living room used to be covered with his toys!

The floor plan for my house is close to Sunset

http://www.drhorton.com/Texas/Austin/Austin/Avery-Ranch-Glenfield/The-Sunset.aspx

The bedrooms are not huge, so with a full size bed, there is not that much space to add anything else. Office is too small to be game room, and we want a bigger space to do miniature painting and video gaming.

Therefore, we are looking to move up to a bigger house with 4 bedroom, so one room can be game room/office. If it is a two story house, then there will be space as game room, leaving the 4th bedroom for office.

All in all, it depends if you want to have kid/kids. Each kid will want a room, unless it is big enough for a bunk bed, desks, drawers, bookshelves.. etc.

We saw a two stories earlier this month - https://www.redfin.com/TX/Round-Rock/3205-Peruga-Ln-78681/home/32504043

Looked nice there... But the rooms are on the small sides even if it is a 2400 sq ft house. The pictures were taken in such a way so they made the inside look a lot bigger.

For two stories, highly recommend at least 2800 sq ft house if you want more spaces.

Also do you plan to buy new house or old house? New houses cost way too much near my area. Cheaper ones are up by 1431 or Georgetown, which have higher tax... =/

 

[Dr. Zaus]

Dixy, my 1600 sq ft house is one story and has 3 bedrooms and two baths, perfect for two people and a little kid.. but once the kid gets older (8 yr old+) he/she would wants more space. Day to day wise it is ok, but it is getting cramp as we have more 'junks' collected - mainly kid's stuffs. The living room used to be covered with his toys!

The floor plan for my house is close to Sunset

http://www.drhorton.com/Texas/Austin/Austin/Avery-Ranch-Glenfield/The-Sunset.aspx

The bedrooms are not huge, so with a full size bed, there is not that much space to add anything else. Office is too small to be game room, and we want a bigger space to do miniature painting and video gaming.

Therefore, we are looking to move up to a bigger house with 4 bedroom, so one room can be game room/office. If it is a two story house, then there will be space as game room, leaving the 4th bedroom for office.

All in all, it depends if you want to have kid/kids. Each kid will want a room, unless it is big enough for a bunk bed, desks, drawers, bookshelves.. etc.

We saw a two stories earlier this month - https://www.redfin.com/TX/Round-Rock/3205-Peruga-Ln-78681/home/32504043

Looked nice there... But the rooms are on the small sides even if it is a 2400 sq ft house. The pictures were taken in such a way so they made the inside look a lot bigger.

For two stories, highly recommend at least 2800 sq ft house if you want more spaces.

Also do you plan to buy new house or old house? New houses cost way too much near my area. Cheaper ones are up by 1431 or Georgetown, which have higher tax... =/

I have four kids in my current rental; but I see what you mean with the toys. I decided long ago that I had to sell anything that hadn't been used for a year. For me, having a lot of stuff isn't worth its price in sanity.

 

[nisryus]

Four kids! You will need a big house. We thought our current house was enough, but didn't realized we would soon out growth it this early.

I am also looking at Yelp and BBB for pointers and history on mortgage lenders, but friends told me Yelp is not truly reliable..

 

[Phoenix86]

Exactly. ARMs get a bad rap but they are a great tool to consider in certain scenarios. They are usually lower cost and great for people who often trade up / down or like to stay mobile (move every 5 years or so). There are also interest only ARM loans with balloon riders and fixed rate conversion options - all offered by most reputable lenders.

You may have the knowledge in general, or not, but in this specific case without asking at least a half dozen specific questions you do not have the information needed to make that recommendation. Period. Full stop.

Your post history indicates nothing less than a full on troll.

 

[UglyCasanova]

Exactly. ARMs get a bad rap but they are a great tool to consider in certain scenarios. They are usually lower cost and great for people who often trade up / down or like to stay mobile (move every 5 years or so). There are also interest only ARM loans with balloon riders and fixed rate conversion options - all offered by most reputable lenders.

With interest rates so low it just really makes little sense to me.

OP if you are worried about the servicing aspect of it when you do speak to them specifically ask to make sure they can portfolio your loan (that's if you are trying to avoid the big guys). Only banks/credit unions will do this by and large, I would be shocked to find a mortgage lender that keeps the servicing.

The problem is that the government has regulated the industry to the point where the smaller guys have to rely on the bigger guys so they don't run afoul of any compliance issues, lest you'd be able to sue or the CFPB can fine them. Some of this is good, others is absurd. If you are really really bored check out the forums at bankersonline.com, especially the section dealing with TRID, to see what they are dealing with. It's getting to the point where the small guys are struggling to be able to afford to do business.

<-- mortgage banker, and it's nuts

 

[boomhower]

Your decision should be driven by the numbers and no so much the name attached. Apply to several and see what offers you get. Your interest will likely be very similar from institution to institution but the fees attached can be dramatically different. As long as the pulls are in a ~30 day time frame they only count as one pull for scoring purposes.

 

[Worthington]

If you are getting a single unit home at less than $417,000 in Travis county then you're really getting a Fannie Mae and Freddie Mac loan. This link shows the required additional rates for having < 20% down.

https://www.fanniemae.com/content/fact_sheet/high-balance-loan-matrix.pdf

Also don't use a Realtor, bunch of scam artists for old people who can't use the internet.

https://www.redfin.com/county/2866/TX/Travis-County/real-estate

You know... unless you like the idea of paying $10,000 so someone can drive you around in their car while talking on a cell phone and lying to you about the value of a property/neighborhood/etc.

Or, you know find a realtor that's trustworthy? I just bought a new house last month and my realtor was a huge asset. From pointing out things that should be resolved that I would have missed to bargaining for better prices he changed the entire process for the better.

 

[FelixDeCat]

With interest rates so low it just really makes little sense to me.

OP if you are worried about the servicing aspect of it when you do speak to them specifically ask to make sure they can portfolio your loan (that's if you are trying to avoid the big guys). Only banks/credit unions will do this by and large, I would be shocked to find a mortgage lender that keeps the servicing.

The problem is that the government has regulated the industry to the point where the smaller guys have to rely on the bigger guys so they don't run afoul of any compliance issues, lest you'd be able to sue or the CFPB can fine them. Some of this is good, others is absurd. If you are really really bored check out the forums at bankersonline.com, especially the section dealing with TRID, to see what they are dealing with. It's getting to the point where the small guys are struggling to be able to afford to do business.

<-- mortgage banker, and it's nuts

It all depends on what you want to accomplish. If your intent is to buy a property and hold onto it until its paid in full or only live there until you tire of it, it is wise to consider all options and possibilities.