Mortgage Lenders?

[Anonymous]

I work part-time, as a second job, at a bank.  Not saying which one.  Part of my benefits as an employee is reductions on rates for mortgages, and no application, underwriting and another no fee, which ends up being a discount of about $990 of their standard fees. 

I've spoken with a lender and she said that once I have about 4K saved we could get started on the preapproval process, which I could then start looking for a house.  Not doing it the other way around since I've heard of too many horror stories. 

But, should I at the same time, go to other banks and check out other mortgage fees/rates.  Or should I just take the deal that I'm suppossed to be getting from the bank I work at, which is also my primary bank, though I do have accounts at a Credit Union as well.  

I e-mailed the mortgage lender at the Credit Union, and she said she would call me, but then never did and never e-mailed me back either, which left a bad taste in my mouth and doesn't make me really eager to work with the Credit Union on a mortgage now.

Message Edited by woopah on 12-31-2008 11:18 AM

[DallasLoanGuy]

bring your gfe here and we can tell you whether you need to shop around or not.

[DallasLoanGuy]

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@DallasLoanGuy wrote:

bring your gfe here and we can tell you whether you need to shop around or not.

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This free service is brought to you by MyFICO.com......

Use it!!

;-) 

[Anonymous]

Thank you DallasLoanGuy!

Below is what she sent me.  We spoke again afterwords and I told her there was no way I was buying a $200K house and that I hope to purchase between $100K-150K and in reality don't want any more than $135K.  So I don't know how that would affect things.  Since I don't have a property, she had to estimate insurance and taxes as well.  And I also hope to get the seller to pay for closing costs, considering the current market.  

She also stated that she felt the interest rate in the spring would be less, and that she was using 6% as a reference.  

Here's what she sent me on 11/21: (Sorry about the line up, I tried to fix it buy they said it was bad.)

Sales Price:                                       200,000.00

Loan (w/o MIP/Funding Fee):           194,300.00

Loan (with MIP/Funding Fee):           197,700.00

Interest Rate:                                     6%

Monthly Payment Estimate:

Principle and Interest:                         1,185.32

Taxes:                                                   350.00

Insurance:                                               50.00

PMI/FHA Mortgage Insurance:              88.56

Total:                                                 1,673.88

Estimated Loan Costs

Non-refundable Application:                  395.00

Processing Fee:                                     300.00

Underwriting Fee:                                  200.00

Courier Fee-Prepaid:                              35.00

Flood Certification LOL:                         14.00

Wiring Fee:                                             25.00

Settlement/Closing:                                600.00

Title Insurance:                                      300.00

Title Policy Endorsement:                      119.00

E-Doc Closing Fee-Settle:                      25.00

Reeordering/Filing Fee:                         150.00

Discount                                             -990.00

Total:                                                1169.00          

Estimated Prepaid and Escrow Costs:

15 Days @32.50:                                 487.48

Mortgage Insurance Premium:                   0.00

Hazard Insurance Premium 1 year:        600.00

Flood Insurance Premium 1 year:              0.00

FHA/MIP/VA Funding Fee:              3,400.25

Total:                                               4,487.73

Hazard Insurance: 2 months @ 50.00 per month:      100.00

Mortgage Insurance: 0 Months @ 88.56 per month:     0.00

Real Estate Taxes: 2 months @ 350.00 per month:    700.00

Flood Insurance: 0 months @ 0.00 per month:              0.00

Total:                                                                      800.00

Estimated Summary of Purchase:

A: Price:                                              200,000.00

B: Prepaids:                                             4,487.73

C: Escrows:                                                800.00

D: Loan Costs:                                        1,169.00

Total:                                                 206,456.73

Minus:

Earnest Money:                                       0.00

Amount Paid-Lender:                              0.00

Other Credit:                                       395.00 (I have no idea what this is)

Mortgage Amount:                        197,700.00

Second Mortgage Amount:                      0.00

Estimated Cash Required for Settlement: 8,361.73

 

[Anonymous]

I also work for a bank and they offer an employee discount for mortgages. I got a GFE from my work, a local broker and Wells Fargo. My work ended up offering me the best rate and the cheapest closing costs. It is always best to shop around but I am happy I chose a loan from my job since if there were any problems I knew about it within minutes. I do not think the process would have gone so smoothly if I didn't work 6 feet away from the mortgage dept. Plus since I work there everyone was more than happy to answer my 9 million annoying first time home buyer questions. It was very stress free. The loan officer from Wells would take days to answer my emails or phone calls and I felt I deserved better service.

[ShanetheMortgageMan]

woopah you should be able to get a lower rate than that, at least 1/2% lower, since it's your own bank and you are getting a special offer, I wouldn't think a 5% rate would be out of the question either.  I'd get a more current offer too, what you have is over a month old.

Message Edited by ShanetheMortgageMan on 12-31-2008 11:44 AM

[Anonymous]

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@ShanetheMortgageMan wrote:
woopah you should be able to get a lower rate than that, at least 1/2% lower, since it's your own bank and you are getting a special offer, I wouldn't think a 5% rate would be out of the question either.  I'd get a more current offer too, what you have is over a month old.

Message Edited by ShanetheMortgageMan on 12-31-2008 11:44 AM

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So you think that 6% was high for even back then?  I don't want to go shopping for rates/etc right now, because I won't be in a position to start looking for houses until April/May.  So in April or May I won't mind going shopping, I guess I just want to know if it looked good, or not.  She did say she thought that the rate would be lower and she just used it for reference, but you think even for reference that was too high?

[ShanetheMortgageMan]

It was a little on the high side for back then, it's way on the high side for now. As you grow closer to eventually buying a home get updated GFE's at that point.

[Anonymous]

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@ShanetheMortgageMan wrote:
It was a little on the high side for back then, it's way on the high side for now. As you grow closer to eventually buying a home get updated GFE's at that point.

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So I guess that means shopping. Bummer. 

I mean I'd rather pay the extra grand in fees then have an interest rate that's high, even just a little.  So is there a process in that, or just walk into every bank within a certain radius and apply and then find the best terms?  

Do all inquiries within 30 days or 45 days count as one?

[ShanetheMortgageMan]

All mortgage inquries, if properly coded, within 30 days, should only count as one when it comes to your impacting your score.  You can ask for a GFE for a specific interest rate, say get GFE's for 5% rates from all lenders - or you can just work with whatever the lender was going to provide you.