Best Way to Shop for a Mortgage? Online?
Question: It looks like we will be shopping for a mortgage again soon. In the past we have received quotes from local brokers, and checked out some of the online resources such as E-Loan and Lending Tree. In the end we went with a local broker who also happened to be a friend. I am wondering what kind of experiences, good and bad, other people have had using a service like E-Loan, Lending Tree, or others. Were there any surprises at closing or down the line? How does the cost compare with more traditional sources such as credit unions, brokers, etc.? Any recommendations?
We are a young couple living in Sacramento, CA, with very good to excellent credit, and 2 moderate incomes. Besides our mortgage, our only other debt is student loans and a moderate (used) car payment.
Thanks in advance!
Answer: Personally, on-line would be the last place I would shop for a loan.
The best is a local bank, especially one that keeps loans in-house, so you can get hold of somebody in person if you need to complain about servicing (though unlike many who post, in over 25 years of owning many properties, I have never had a servicing problem). Of course if the locals are not in the ballpark on the rate, then don’t go ahead.
A couple of years ago, we did a refi for a shorter term and due to the odd product we were looking for the local banks were not competitive so we used a local broker. He can do all the research and yeah he gets a commission or fee out of the deal, that’s what a broker does. We were very glad to be using a local guy as there were paperwork problems at the closing that we needed his help to straighten out – no NOT the lender “ripping us off” – it was the closing attorney trying to tack on extra fees. The broker beat him over the head some, and also covered part of the fee for us.
There can be other considerations than just a quarter point.
Many of the heavily advertised on-line stuff is for people with bad credit who will pay thru the nose to get an unfavorable loan.
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