Rate Question

[loannubie]

Hello,

I am really new with getting mortgage rates. I am interested in purchasing a house and a friend of mine recommend a mortgage broker.

Today I went to this broker to get a quote.
My wife and I have a score of 700+

We are looking for a $250,000 loan we were quoted 6.375 for a 30year fix plus closing cost. The other option we have is 6.50 with closing costs included.

The mortgage broker took our ss#'s and driver licensee info and last 2 paychecks + last 2 years of W2's.

Were we suppose to give that info? I am scared that I shouldn't of given him the info.

Thanks,

Chris

[jaredevenson]

Hello!

great questions.

sounds like a great rate, what you need to consider is if you have the money up front to pay for closing costs go ahead and do it yourself, if not than go ahead and have him include it into the rate, sounds like a great deal to me! i'd get it in writing on a Good Faith Estimate.

Also be aware that you will also have Mortgage Insurance with this quote that he gave you. and what all is he exactly considering your "closing costs"

some people can consider just the brokers processing and underwriters fee and origination fee for closing costs, where you are also going to have Title insurance fee's, Escrow Fee's, and fee's from the closing agent. so see what he means by covering "all closing costs" if that includes your Escrow reserve accounts or just his fee's.

and yes it sounds like the info you gave him is accurate those are the basics that you need for every "full doc" loan.

good luck with it!

[loannubie]

jaredevenson,

Thanks for the replay.
I forgot to add this loan is with me giving 20% down.
Should I shop around more?
I just do not feel confortable giving the loan companies all my personal information. With identity theft and all.

Thanks

[chow]

with 20% down you wouldn't have any PMI!

okay, can I have this loan?

_________________
Kathy Grider

[Haplo]

A good faith estimate won't mean squat until you have a purchase contract signed and are ready to lock in. So many people around here get the bait and switch from people. "Oh, well rates got worse over the last few days" even when they've gotten better....considerably.

It's a pretty good scenario, but you've gotta keep in mind the difference between now and when you lock, and ask for a detailed explanation if any of it changes.

_________________
Travis J. Halwachs
Renovation Specialist
217-553-6494

[Marty 1stMet]

Chow, openly solicitating.....

And yes, that's a mispelled word up there too!

[loannubie]

ok....is it normal for a mortgage broker to ask for our ss#'s and driver licensee info and last 2 paychecks + last 2 years of W2's.

Were we suppose to give that info? I know he needed the ss# for the credit check. But what's with the W2's, the list 2 paychecks, and drivers license numbers?

[mortgageDr]

Make sure you get a GFE(good faith estimate) from the broker.

I agree with the others that the bait and switch is happening alot.

I would also try to go to the bank for a rate.

Wells Fargo has very competitive pricing right now.

Email me for reference # if you like. My guy can close a deal quickly and

the price and rate they quote will not change at closing time.

_________________
please email with any questions

[chow]

[chow]

[Haplo]

Yeah, we do have pretty competitive rates right now

_________________
Travis J. Halwachs
Renovation Specialist
217-553-6494

[Marty 1stMet]

[m2c]

Back to the orginal question. Right now the rate is not so hot; a week or so ago, it would have been good.

Rates vary geographically. To give you a bench mark, we'd be a 6.00% with no points and $500 in junk fees.

[jrhartman]

I will agree with m2c......today's rates should be closer to 6-6.125% with zero points. But you also have to take into account that quoted rates and todays rates really don't mean swat because the rate cannot be locked in until you have a purchase agreement signed because the rates are locked to a property address.

Your main goal right now should be finding someone to work with that you trust, not shopping for rates. If you find someone that you trust you will be put into a competitive rate and have the piece of mind knowing that your loan will be in good hands. I personally would have no problem paying an 1/8th or even a 1/4 higher rate if I know that I am working with someone that is reputable, trustworthy and looking out for my best interest...hell even a 1/4% is only $30 a month or so. A dollar a day is worth if for me to have the ability to sleep well at night. I am a firm believer that there is no need to "go cheap" with your largest financial asset (home), go for the person/company that will take care of you the best.

On a related note, I personally would steer clear of brokers altogether and concentrate on direct lenders.

[Marty 1stMet]