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Help with mortgage


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I am ready to buy and have Fico8s of EQ: 800+, TU:800+ EX: 714(refuses to remove over 7 year old settlement).

 

I am being driven crazy by shopping for a mortgage. Are there any mortgage brokers out there that charge a fixed fee ?

 

I've been on all of the websites, called up lenders for rates, and the ones that have the "best rates" all have an origination charge which is "set-off" against a lender credit. I really don't know if I trust these companies, which have been suggested by many of the "loan search engines" online.

 

Here is what I am looking for:

15 year, conventional, $424,100 loan ($50,000 down), no points, no or low origination fee. I want to write an offer, but I want to get my mortgage application started. This is for Illinois. W-2 Income of ~$270k, monthly debt payments of ~$1,400 (includes rental property mortgage), rental income of $8,000 a year from an investment property.

 

Alternatively, I may get a jumbo loan with a likely purchase price of $550,000-$600,000, still with $50k down.

 

I keep getting quoted 3%, 3.125%, 3.25%, 3.375%, and the ones with the higher rates claim that they have market rates, except there are other lenders with lower rates. The ones with the lowest rates won't give me a rate lock at all and have an origination fee. My question is, what is the chance of a bait and switch with the lowest rate companies? They claim the origination fee will be offset by a credit, but won't guaranty the credit and won't tell me how it is calculated.

 

I don't want to go with one of the big banks, because they all seem to have MUCH higher interest rates.

 

I know there are restrictions on advertising, but can someone please PM me a suggestion with your recent experience with a lender in IL?

 

Are the lenders listed on the mortgage search engines that have the "best" rates all bait and switch companies with horrible customer service?

 

Also, do the quoted rates basically mean NOTHING until all of my documentation is in, e.g., signed purchase agreement and appraisal, so that they can basically change the rate to whatever they want and I have no recourse other than switching lenders?

 

THANKS!

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This is a difficult question - the problem is things will change between now and when you can lock a rate - you have to be in contract first

There will always be someone cheaper tomorrow and there was someone cheaper yesterday - no way to really know what is the best deal -

I would find a few of the lenders that you thought were upfront and have them give you an estimate of their rate and costs on the same day

Make sure they all have the same info - then decide which one you like best -

The better rates will typically cost you more - if there is nothing in the rate for the lender they have to charge to make their commission

If they arent charging much then they are probably getting paid through a higher rate

 

Good Luck Hope this helps

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Congratulations on getting yourself in a position to purchase a home.

 

I'm sure you are a little burned out.

 

Lender's rates & lender credits change daily sometimes there might be a re-price for both mid day.

 

A lender can quote you a rate @ 10am & by 3pm the lender credit has decreased or the rate could increase.

 

Without a contract you can't lock in a rate. You can however,discover a lender that is truly offering you a good rate & trust that when you did get a home under contract the rate they offer is at market rate & not inflated.

 

As Brian suggested choose between the lenders you have spoke with & trust & chose the best option.

 

You can check Freddie's Mac's website as a gauge for where average rates are. http://www.freddiemac.com/pmms/pmms_archives.html

 

Also, go to an industry website that takes a daily survey of lenders nationwide for average rates http://www.mortgagenewsdaily.com/mortgage_rates/

 

Check this website to get an idea of what closing cost average for your area. https://smartasset.com/mortgage/closing-costsit is normally pretty close to final cost.

Edited by Stevelgar
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