I need an education!! (Mortgages)

Oy Mortgages!

Vin and I are shopping for a home but before we can really do that we need a mortgage. I was told (and this could be bum info) but, I was told that you should go with a Mortgage Banker over a Mortgage Broker.

Other than that, I have no information. I know a lot about real estate but I've never had to get a mortgage before so I don't know what I'm doing.

Can anyone give me the "idiots guide" to what I should know - as well as some recommendations for where we should go for the mortgage. We want to see about getting pre-approved so we can start aggressively searching for Condos.

Thanks so much!!!

Re: I need an education!! (Mortgages)

I cant help with the ins and outs of mortgages cause DH was in the business so he did all the details with that but we used a Broker....I am so glad we did. The bank was sitting on paperwork for 60 days and we never knew and our broker was able to push because of her contacts. If I was dealing with the bank directly I think we would still be waiting for our closing. If you want the name let me know and I can FM our brokers info.....she has been doing this for 30 years and can find the best fit for the loan type!

Re: I need an education!! (Mortgages)

We went with Teacher's Credit Union for both of ours. Lowest rates around, immediate response from the bank (no dealing with a middle-man to slow things down).

We did a 2nd mortgage with the same Credit Union since the first one was so easy and simple (for a mortgage, that is... )

Re: I need an education!! (Mortgages)

We used Bethpage Federal Credit Union after shopping around at various banks and talking with a broker. They had the lowest rate, lowest closing costs AND we closed 30-days from the date that the seller signed the contract back.

We nixed using a broker because we could see no reason paying someone to do something that we could ourselves.

Good Luck and Happy shopping!

Re: I need an education!! (Mortgages)

Posted by OStewarts

We used Bethpage Federal Credit Union after shopping around at various banks and talking with a broker. They had the lowest rate, lowest closing costs AND we closed 30-days from the date that the seller signed the contract back.

We nixed using a broker because we could see no reason paying someone to do something that we could ourselves.

Good Luck and Happy shopping!

Re: I need an education!! (Mortgages)

Everyone will tell you differently about using a broker or banker. It's really a personal preference. I work for a large mortgage bank, so obv, you know what I would say.

Other than that- I would say get your paperwork together now. You'll need:
last 2 years of W2s for both of you,last 2 years of tax returns, one months worth of pay-stubs, and 2 months latest account statements for any assets you are using to qualify.

Ask about different programs, grants that may be available to you at different banks.

Be patient in the process, times are changing and things work differently now than they ever did. But also, do not be afraid to ask questions! Make sure someone is actively working on your loan.

Good Luck!

Re: I need an education!! (Mortgages)

we are using a bank over a broker too. brokers used to be able to get you very aggressive rates but now it seems the banks do the same or better and now their is NO middle man. they ultimately are just getting it from a bank for you.

we are using bethpage federal credit union since they have the lowest bank closing costs and great interest rates

but they don't have all the programs that are out there, so for instance if you were to go for fanniemay (if its still around) which provides you with closing costs and down payment assistance, you couldn't use bethpage for that, you would go to the site and find a bank that does the program (I think some Astoria banks do it)

I can't give you the ins and outs on an actual mortgage because I haven't gotten there yet, but you should get all that info from the bank you choose to work with since they can explain it best including all their procedures and time frames.

good luck!! and welcome to a very stressful but fun ride everyone here is supppppper helpful!!

Message edited 1/5/2010 4:36:16 PM.

Re: I need an education!! (Mortgages)

there are also direct lenders- like Continental Home Loans

they actually bank more FHA loans then just about every bank combined

they have a great website with lots of info

mortgage help

I work with a LO there for 203k loans (rehab loans for bank owned properties in need of major work)
I went to the office and I was very impressed with them

they also have first time home buyers seminars a lot- if you call them they should be able to tell you when the next one is

Re: I need an education!! (Mortgages)

We also are getting our mortgage directly from the bank. We shopped around with both banks and brokers and ultimately we got the best deal by dealing with the bank directly.

Re: I need an education!! (Mortgages)

Get your hands on the book, "Mortgages 101"-it really changed everything for me and put it all in layman's terms..should you have any questions, FM!

Re: I need an education!! (Mortgages)

We shopped around a lot, both banks and brokers. In the end, I needn't have bothered: all the banks gave us pretty much the same deal. But we were easy customers - great credit and 20% down. So I just went with the bank that was most convenient to me. If you are a more unique situation - putting less money down, iffy credit, etc., then it's definitely to your benefit to shop around. Call banks and brokers and see who can do the best for you. They really want your business so they're happy to talk to you and crunch some numbers for you over the phone.

Oh, and the brokers I talked to had waaaaay worse deals than the banks. One broker tried to talk me into an adjustable-rate mortgage that started at 5% (meaning that it really could only go up after a few years), when the banks were offering me 30-year fixed for 4.875%.

Re: I need an education!! (Mortgages)

you could use the help of a real estate attorney. They could guide you in the right direction and not pressure you as a mortgage broker/banker may. I used this guy in Hicksville. He did my closing as well as my parents, sister and several friends. I highly recommend him Daniel Boldi, Esq - Real Estate Attorney
I think his contact info is right on the website

Message edited 1/5/2010 9:39:05 PM.

Re: I need an education!! (Mortgages)

The mortgage broker at my real eastate agents office pre approved us for a mortgage when we started looking for houses. I did not shop around for a mortgage until after I found my house. I did not use the original mortgage broker.

Re: I need an education!! (Mortgages)