I am coming to NT for advice (4)

[Eziekial]

So I've decided that the housing market in south Florida is overheated and due for a correction but can't stand paying over 1k in rent for a crappy 2 bedroom apartment. I need advice on a mortgage. I've tried lending tree and got 12 offers with various lenders all claiming they will meet or beat any other offer but I can't stand talking to these people. What do I do? What is a great deal in the current mortgage market? What kind of things should I ask for in the contract? What questions should I be asking? Thanks in advance for you assistance!

You'll receive nothing now, but on your deathbed, you will achieve total conciousness. Which is nice.

[The Kizzy]

Lots of things to consider. I was in the mortgage business for 6 years. These online lending institutions offer great rates, but don't tell you about fees. Alot of the time, you will get to the closing table thinking to yourself, WOW, I got a rate of 5.325% with $2,500 in closing costs only to discover that it was an adjustable rate, and it will be going up in 3 months and the fees are actually $5,500.

They also do not care (and I speak from experience) about closing dates.

My advice is to go to a national lender like Countrywide, or American Home Mortgage. Also check your local bank.

As far as a realtor goes, again go with a big named company like Century 21, or ReMax, not with a small noname like Home Selling Team or Mom and Dad's Realty. I can actually refer you to a realtor in your area, I think 10sun can do the same thing.

If you have questions regarding credit, etc etc, please feel free to email me at bigjanetbrown@yahoo.com if you want to discuss personal stuff.

[KILL]

real estate in south fl has been slowing down since this summer and is virtually dead right now - definitely a buyers market.

i think this is a very risky time to make a purchase here, but if you cant wait to buy, make offers at least 10-20% under asking price and walk if they dont like it.

[Minrott]

Go to your local credit union. They'll lowball you. Fuck the big banks, their service is shit.

[Goose_Man]

use a mortgage broker (not a mortgage banker)

[Ouchyfish]

Nothing that can help ya, or to do with the subject, but you reminded me of an old woman on the Clark Howard show last night. She was asking if her reverse mortgage plan was a good one and he just about flipped out when she told him that she would be paying 13k dollars in fees to borrow 39k dollars.

OK carry on.

[Tikker]

use a mortgage broker (not a mortgage banker)

I used one for my previous mortgage

pretty good experience, but you have to be willing to deal with whatever bank he recommends

You also have to be willing to do your own homework a bit too, as the broker may recommend the mortage that gives him the best commission, as opposed to what's best for you

[Eziekial]

Thanks guys, I appreciate all the infoz.

[The Kizzy]

use a mortgage broker (not a mortgage banker)

The mortgage brokers are the ones who charge all the extra fees. 2 points for this fee and 595 dollars for this fee, they are snakes. They are also on the verge of getting banned.

[Tikker]

eh?

so they should work for free?

that's the dumbest thing i've ever heard

[The Kizzy]

no, that is not what I am saying. When you go through a bank, they get paid on basis points because the banks service these loans. When you go through a broker, they do not get paid on bps because they sell the loan, so they jack of the fees to make extra money.

Would you rather get a rate of 5.75 and pay 2,000 in fees to a bank or get a rate of 5.75 and pay 5,500 in fees to a broker.

[Tikker]

maybe it's different in canada


here, the broker's fees are paid by the bank, not the person taking out the mortgage

basically, the banks pay them a finders fee

[The Kizzy]

Not here. They charge the buyers, AND the banks pay them a fee for bringing them the loan. On top of that they make them pay underwriting fees, and processing fees, and I wore a blue tie one day fees, etc.

[Goose_Man]

I've always used a mortgage broker because they have access to 100s and 100s of loan programs out there for A - D paper. On top of that they can get very creative and suggest ideas for financing that you may have never thought of.

Where as you go down to your local CU or Bank and they will only deal with A and sometimes B paper and then if you do qualify its very traditional.

If you shop around and compare brokers you won’t get ripped off and the honest ones only charge a point... well worth it IMO.


But hey what do I know? I only buy 2-3 houses a month.

[The Kizzy]

I know you are getting screwed out of $6,000 to $9,000 a month then.

I only sell 15-20 houses a month.

[Goose_Man]

I know you are getting screwed out of $6,000 to $9,000 a month then.

I only sell 15-20 houses a month.

Nah you only do the paperwork..

[The Kizzy]

so I see all the settlement statements.

[Jesus]

We have loan officers (mortgage brokers) here in my office, generally they can get you better rates than a lot of banks. About the only one they cannot compete with is 3rd Federal Bank because they go below prime quite often.

I would never suggest going to Lending Tree again btw... every company that gives you a look will pull your credit and having your credit pulled 12 times in a month can be very bad for your rating.

Feel free to ask any other questions, the whole process can be a shitload of fun ^_^

[The Kizzy]

wait,......back the bus up.

You live in Texas, TOTALLY different lending laws

[Tikker]

and you live in ohio, so your experience means shit this discussion too then

[The Kizzy]

No, Im talking about NATIONAL lenders. Some that we use. Texas is just different than any state. I have done loans in Florida. So bite me.

[Tikker]

I still think you're full of shit about the mortgage brokers~

[The Kizzy]

I think I am not. I can fax you some HUD1s if you want.

[Jesus]

btw, just get one lender to pull your credit and get a copy so you can go shopping around without them fucking up your credit.

Also, there are a lot of shitball lenders out there who do jack rates up at the last minute or throw in a whole lot of fees. They are the ones who only close 4 loans a month... the ones who make the real money close 10+ a month and make their money through quantity.

[Durothil Skyreaver]

Not here. They charge the buyers, AND the banks pay them a fee for bringing them the loan. On top of that they make them pay underwriting fees, and processing fees, and I wore a blue tie one day fees, etc.

Sweet! I need to work a blue tie fee into my job somehow.