Profile picture for Jeremiah Wean

Jeremiah Wean

Lender

Partner (17 years experience)

Specialties:
Purchase Loan,
Refinancing,
Home Equity,
Mortgage Planning

Advice

  • (3 Contributions,
  • 0 Best Answers,
  • 0 Helpful)

Contributions are sorted newest to oldest.

Purchasing a home - is it wise to use a mortage broker or online broker (whom appears to be cheaper)

Answer

Definitely be learly.  There is no magic money.  All the funding sources are now coming from 3 main companies.If you watch some of the online ad's or even TV ad's you'll notice.  That they run 2 ad's side by side.  My take is partially in an effort to confuse consumers.  The one ad is a low rate ad, but it never mentions the cost.The other ad is a low cost ad, but it never mentions the rate.By putting them together unfortunately people forget what they didn't see from each ad, and think they would get low rate and low fees.Another problem is the time it takes to update.  Rates have been extremly volatile lately, so if the information wasn't updated in the last 30 minutes.  Then all you're getting is a quoted rate and not a real rate.

  (0)
how far can I go before identifing a lender

Answer

smarkma,You need to make sure that you are getting the lowest overall cost of borrowing, not just the best GFE.Some items to consider:*  How long do you plan on being in this house*  How long before you need to refinance again (lower rate, cash out for home improvement, debt consilidation, start college savings account, etc.)The typical mortgage is refinanced every 3 - 5 years, and the typical homeowner moves every 5 -7 years.Make sure to compare just the closing costs, and not the pre-paids.  You need to do this to ensure that if you are dealing with an unexperienced loan officer they don't list a smaller amount than necessary in your escrow account.  So, don't compare:*  Tax reserve*  Homeowner's Insurance Reserve*  Aggregate Escrow* Odd Days interestThe first three will be the same, the last would only be different, based on the interest rate.So, what does that leave to compare:* Loan Origination* Loan Discount* Broker Fee* Processing Fee* Underwriting Fee* Application Fee* Admin Fee* Closing* Title InsuranceAsk each if they are willing to guarantee that they will come in at or below the quoted Good Faith Estimate.Choose the best one for your situation and move forward.  Most lenders will not lock your loan in until they have taken a full application and sometimes even ordered an appraisal.[self-promotional post, removed by moderator]

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how hard will it be to get financing

Answer

Your best bet will be to rent for one year.  Then apply for an FHA or Rural housing loan.  With FHA you will need 3.75% for downpayment; however, it can come in the form of a gift from a relative.  With Rural Housing there is no downpayment, but the house must be in an approved area (typically a community with less than 25,000 residents.I would also suggest going to annualcreditreport.com and reviewing the report for accuracies.

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