Who is your mortgage with?

[jsharmon7]

We went with 5/3 and have had good experiences.

 

[scootn103]

Try the local credit unions in our area , they seem to get rates and more then likely won't sell the loan and keep it local.

 

[eldirector]

Another Credit Union vote here. Ours is through Eli Lilly's credit union. Technically, whoever actually underwrites them. Never been sold. They made their end of the process incredibly easy.

 

[CathyInBlue]

Harrison Twsp Assessor's Office. If I stop paying them their annual tribute, they'll send the sheriff to evict me.

 

[Tripp11]

Union Savings Bank
Union Savings Bank - Proudly Serving Ohio, Kentucky and Indiana Since 1904

Been with them since 2004 and they've never sold my mortgage to another bank.

Competitive rates and closing costs were $300 or less.

 

[88GT]

Ours has been sold 3 times in the last year to different companys, it is through Wells Fargo as of now.

Isn't it your mortgage brokers job to find you the best deal and handle everything?

A broker doesn't originate loans, so that wouldn't answer the OP's question. And the man who lets the broker handle everything is the one who finds that his note includes terms he didn't want. It's a foolish thing to do.

I haven't spoke to a mortgage broker. I don't mind doing my own homework, and figuring out things like this on my own. I read, and read, and read, and decided a MB isn't the route I want to use right now.

Granted, if I can't go at this on my own, with the help of family and friends, I will seek out the expertise needed, but I would like to give it a swing first.

Mortgage broker = colossal waste of money. Saw a broker expense of $5000 on a HUD statement one time. I nearly passed out. Most aren't that ridiculously high, but it's still a waste of money. Of course, to each his own.

We have used Huntington, Chase, First Horizon (now Caliber Funding, I believe). Chase is the only one I would recommend against. They suffer greatly from being "too big." No efficiency or organization within the loan service (after the loan is closed) department. Multiple errors on their part we have had to have corrected. Huntington has always been good. First Horizon was good, but can't speak for the new company. We have originated/re-fi'd a LOT of loans. I've also seen a lot of loan origination processes (10+ years as licensed real estate practitioner). I can better tell you who to avoid than who is good though. "Good" is somewhat subjective. Bad is universally so.

Smaller banks and credit unions will have tighter credit requirements and generally fewer options. Holding accounts in those institutions can often buy your some rate reductions. These and the home loans originated with the super large bank corps usually keep and service the loans they originate. Companies that are primarily home loan originators (as opposed to banks that also offer home purchase loans) usually have a wider range of loan programs, including those with less restrictive requirements. These companies are more likely to sell the loan to a different servicer; they make their money up front on the origination fees and less on the actual interest being paid back on the loan. When you are shopping, ask about the likelihood of the loan being sold. If it is sold, you have no say in the matter, and that great lender with the awesome customer service that originated your loan is no longer the company to which you send payments or call to fix the 10th mistake.

Couple of points to remember:

In terms of your monthly payment, the interest rate isn't nearly as influential as it seems. And quibbling over 1/8 or 1/4 percent rate differences? It's generally not a wise idea to buy down the rate unless you know you will be staying in the home for a good long time. At least long enough that the cost of buying down the rate is realized in the dollar savings from the lower rate. And that usually takes somewhere near the life of the loan. You can get the same result by paying more on the loan each month. (Having said that, the total amount of interest paid on the life of the loan can be drastically different with small changes in interest rate. But again, you would have to stay in the home for longer than 15 years on a 30 to realize the benefit, and there are other ways of reducing the interest charged throughout the life of the loan. Just don't get hung up on the interest rate.

Closing costs vary. Be sure to get a Good Faith Estimate before moving forward. And check with a trusted agent (real estate or friend) who has been through the process and understands what is normal and customary for the charges that have been included. The lenders are not required to be accurate in their estimation of costs for which they do not make a direct charge. Many will underestimate to influence a borrower's decision to move forward. But when the actual charges are calculated, the borrower can owe several hundred dollars more than the GFE indicated. I have received many a phone call from buyers who want to know why the amount they have to bring to closing is so much greater than they estimated it would be.

I am a fan of paying for non-loan items that must be paid before or at closing out of pocket, or what is called "outside of closing/POC" on the HUD-1 statement. It is strictly a matter of control. I do not like paying my obligations through middle men. But this is more of a personal preference than anything.

Beware the lender rep (this is the person you will be talking to to obtain the loan) who doesn't have time for you after you'd made application. And if underwriting is stalled for whatever reason, beware the lender rep that won't step up and try to help resolve. That said, the ridiculous regulations placed on lenders of late have resulted in more of the big lenders compartmentalizing their processes. You may find that the lender you choose has a new contact person once the loan application is made. That's fine. As long as you have a go-to individual to keep you informed. It doesn't necessarily have to be the person you first talked to.

 

[femurphy77]

Home Bank. Local, personal, neighbors.

 

[nakinate]

I went through Old National because it is my bank. It was immediately sold to Wells Fargo. Great experience and 3.25% 30 year fixed.

 

[pjcalla]

Union Savings Bank
Union Savings Bank - Proudly Serving Ohio, Kentucky and Indiana Since 1904

Been with them since 2004 and they've never sold my mortgage to another bank.

Competitive rates and closing costs were $300 or less.

This. We we had our original mortgage with them and have re-financed 2X (we refi when the rate drops enough) with them and they are by far the cheapest. Basically, they only charge you the appraisal fee (~$300 IIRC). My parents also have mortgages (personal and business) through them. The last time we re-financed we went down to 15 years @ 3.0% fixed. My parents closed a bit after us, and got it to 2.875%. You will need solid credit, but it sounds like you got it under control. We have ours out of the Castleton location, and I can give you a contact if you want.

 

[BehindBlueI's]

Mortgages are commodities these days and get sold a lot. My personal home mortgage started with First Horizons, a local place, and then went to Chase. I went with First Horizons because of low closing costs on VA mortgages. My other two properties were financed through USAA and Scott Co State Bank, respectively. The USAA mortgage was sold to GMAC, and then transferred to Green Tree when GMAC tanked. The Scott County State Bank one stayed with them until I paid it off.

As for why I picked them:
USAA had low closing costs and I could do all the paperwork from overseas, which I needed at the time. Their interest rates were comparable to everyone else I contacted.
SCSB would loan on undeveloped land, which I needed at the time. Low closing costs and reasonable rates, plus I'd banked with them since I was 16 and they treated me right.

 

[glockednlocked]

Consult your Realtor! No good rate shopping fly by night lenders that will end up jerking you around and delaying closing.

 

[perry]

Originally through USAA in 2009. Sold to GMAC before I made the first payment. Then last year to Ocwen when GMAC went bankrupt. Oddly enough, I learned a big wig from GMAC mortgage is now a big wig at Stonegate (Indy company, went public last fall). Only problem I've had was when I changed homeowners insurance and they couldn't get the escrow money sent to the right company when it was with GMAC. Some complaints to USAA got it fixed lickity split.