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Mortgage pre-approvals

tornadog 3,910 420 April 14, 2016 at 02:40 PM
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So I have been pre-approved for mortgage from 4 diifferent lenders, one local and the others are penfed, amerisave and quicken loans. All of them are asking me to send the purchase agreement. How do I pick which one to go with? The rate is lowest with penfed but I know they take a long time and seller wants to close ASAP.

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#2
I cannot advise you who to go with as I have no idea how these lenders have been handling TRID disclosure guidelines, which can slow down the overall process for some lenders. (Plus, I admittedly have a conflict, being a broker; but in no way self promoting myself here.).

However, I can advise you to not only look at the rate as you need to compare the fees/costs associated with the rate. (The lowest rate is not always the best rate.)

PenFed advertises a 3.50% rate under certain criteria, but that is also with a 1% origination fee, so that is not any better than someone advertising 3.75% w/ no origination fee.

I would simply ask each one if you can close in 21 days and see their reaction. (21 days is really pushing it, but 30 days should not be an issue for anyone if you have all your documentation submitted up front.)

-Adam
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-Adam
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#3
I've heard the same about PFCU - good but slow, difficult to contact. I deal with them for CC, MM and an auto loan but not on the mortgage side.

Anecdotally I did a refi with Amerisave 3 months ago and it far exceeded my expectations in time, cost and ease. The people were really good to deal with. They seem to be pushy but that's just them making sure the process is moving along. All in all it took 45 days or so to close but that's probably mostly because I filed for the refi before Thanksgiving and and 3 major holidays within ~30 days (Thanksgiving, Xmas, NY). They will resell the mortgage - right now mine is with PHH which again I have had zero issues with.
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#4
Quote from tiedyed1 View Post :
I cannot advise you who to go with as I have no idea how these lenders have been handling TRID disclosure guidelines, which can slow down the overall process for some lenders. (Plus, I admittedly have a conflict, being a broker; but in no way self promoting myself here.).

However, I can advise you to not only look at the rate as you need to compare the fees/costs associated with the rate. (The lowest rate is not always the best rate.)

PenFed advertises a 3.50% rate under certain criteria, but that is also with a 1% origination fee, so that is not any better than someone advertising 3.75% w/ no origination fee.

I would simply ask each one if you can close in 21 days and see their reaction. (21 days is really pushing it, but 30 days should not be an issue for anyone if you have all your documentation submitted up front.)

-Adam
Old Hippy & Mortgage Pro
Agreed. It seems to be more of a question of closing dates than anything. You should just press them for closing times and go with your gut. Good luck.
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#5
My last mortgage with Penfed went very smoothly. We actually closed 2 weeks earlier than initially set.
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#6
Quote from vbt View Post :
My last mortgage with Penfed went very smoothly. We actually closed 2 weeks earlier than initially set.
How many days did it take in total?
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#7
Penfed was great to deal with and we closed right on time.
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#8
Plan to buy a condo in Bronx, NY; which banks shall get preapproval?

Penfed is ok? How about HSBC or chase?


IF two people buying a condo together, can just use one person's income proof and credit score to get the mortgage while still putting 2 people name on the deed?

Also why so hard to find a good condo in bronx; inventory is LOW
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#9
Our refinance with PenFed was a nightmare. The rates were great and whatnot, but the representative we had was sloppy, slow, uncommunicative, etc. She never once answered her phone. The only time I got a response on emails or phone calls was if I escalated it with a supervisor. The people I spoke with in the West Coast office were always very nice and helpful though.

In the end, due to their delays and not providing proper information, it cost us almost $800 due to closing out the FHA loan too late (thus having to pay a full months worth of interest). I emailed their chairman office, or whatever they called it, and never got a response. Finally I filed a BBB complaint and that seemed to wake them up. They ended up refunding about $400 in their closing fees to make up for it.

Left a very bad taste in our mouths about ever dealing with them again.
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#10
Quote from nycmart View Post :
Plan to buy a condo in Bronx, NY; which banks shall get preapproval?

Penfed is ok? How about HSBC or chase?


IF two people buying a condo together, can just use one person's income proof and credit score to get the mortgage while still putting 2 people name on the deed?

Also why so hard to find a good condo in bronx; inventory is LOW
Chase, in my opinion, wants to leave the mortgage market if they could. I receive many referrals from Chase as their loan product guidelines are reducing potential borrowers and their options are dwindling.

The Bronx market has more Coops than Condos, and on both, in addition to your qualifications, the Condo HOA or Coop Corporation has to meet lending guidelines as well. This is why a mortgage contingency is especially important when entering into a contract to purchase a Condo or Coop. (I am not anti Condo or Coop and just stating facts.)

Again, as a broker I am biased, but an experienced mortgage broker can come in very handy and provide you superior service, while their compensation is paid by the lender.

-Adam
Old Hippy & Mortgage Pro
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#11
Quote from phonic View Post :
Our refinance with PenFed was a nightmare. The rates were great and whatnot, but the representative we had was sloppy, slow, uncommunicative, etc. She never once answered her phone. The only time I got a response on emails or phone calls was if I escalated it with a supervisor. The people I spoke with in the West Coast office were always very nice and helpful though.

In the end, due to their delays and not providing proper information, it cost us almost $800 due to closing out the FHA loan too late (thus having to pay a full months worth of interest). I emailed their chairman office, or whatever they called it, and never got a response. Finally I filed a BBB complaint and that seemed to wake them up. They ended up refunding about $400 in their closing fees to make up for it.

Left a very bad taste in our mouths about ever dealing with them again.
Have you been following any cases about paying the full month of interest? Not sure if a class action was filed yet. I'm pretty sure something is going to be done about that
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#12
Quote from tornadog View Post :
How many days did it take in total?
I don't recall.
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#13
Quote from stufine View Post :
Have you been following any cases about paying the full month of interest? Not sure if a class action was filed yet. I'm pretty sure something is going to be done about that
No I have not, but thank you for bringing it to my attention!

I just did a quick read of http://www.chicagotribune.com/cla...olumn.html

I'll need to review my payoff statement to see if anything was mentioned (I don't believe it was). If not, maybe I can start a CAL against BB&T. Big Grin

EDIT: Unfortunately, I just double checked and confirmed my payoff statement did provide the warning. My issue was that while I closed on the 30th., the settlement date (due to the mandatory 3-day waiting period) didn't take place until the 2nd. Or something like that. All I know is one day earlier would have saved me $$$.
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Last edited by phonic April 18, 2016 at 12:22 PM
#14
Unlike conventional loan payoffs, FHA payoffs are always calculated for the fist day of the month.
So yes, if you payoff a FHA loan mid month you are still paying the whole moth of interest.
It has been this way for as long as I remember (>20 years) and while it is totally unfair I have never heard a plan for HUD to change that practice (despite chatter of class actions for decades).
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