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December 29, 2007
Best Banks for Co-Op Purchases
I'm a first-time buyer and I've been pre-qualed by Chase for a good rate and a good amount of financing, but I'm wondering about whether it might be worth checking out other banks, not so much for the rates, but for quickness in closing deals and overall satisfaction during the life of the loan. I know nothing about the reputation of banks when it comes to financing co-op purchases and customer satisfaction, so I'd definitely like to hear from those who have had good or bad experience with Chase and other banks, especially those who have recently purchased co-ops in buildings with lower owner occupancy rates (i.e. 50%).
Thanks!
Comments
Do yourself a favor and rule out Citibank right away. I had a very bad experience with a simple equity loan recently. They just kept losing things, making mistake after mistake and most of the people I dealt with were totally incompetent. Once it was forwarded to the title company it was smooth sailing but getting to that point was absolute hell. Good luck!
Posted by: guest at December 29, 2007 6:03 PM
I agree with 6:03 that Citibank is a nightmare of a lender these days. Although I just closed on a refi with them, getting a fantastic rate that neither Chase nor Bank of America could beat, it took months to close the deal! Meanwhile, it was hell to pay all the way, including at the closing itself where the process was held up because the numbers still weren't right.
Posted by: Brooklynista at December 29, 2007 11:26 PM
Chase was the only bank that would give me a loan for a <50% owner-occupied co-op apartment (and I had perfect credit!), so you're starting in the right place. I had a very good experience with them, very smooth closing, no issues throughout the process.
Supposedly HSBC and Citibank also consider loaning to <50% owner-occupied as well (although they wouldn't for my building), or you can discuss with a mortgage broker and tell them the situation to see if they can find you something better. Mortgage broker only gets paid if they are successful! It can be a very frustrating endeavor, but if you find the right apartment and you're getting a deal, well worth it. Best of luck.
Posted by: guest at December 29, 2007 11:32 PM
If you go through one of those agencies that help people buy their first home, you may qualify for a nice big closing grant from BofA, or any of several other grants. Check Acorn and "Neighbors helping Neighbors".
Posted by: zapzap at December 30, 2007 10:15 PM
Talk to your lawyer, they would probably have dealt with all the banks. When I recently closed on my apt (selling)my lawyer mentioned that HSBC was slow. Not only were they slow, but they couldn't produce my stock certificate in time. And they couldn't say exactly when it would arrive. So in order to close on the scheduled date, I had to have the co-op lawyer provide an affidavide about the stock certificate (extra $$). Then when my lawyer set up the affidavide with the co-op lawyer and sent it to HSBC they almost lost that too! Even though they couldn't manage to get the documents needed for the closing there, they had no problem getting there to collect their payoff!
Posted by: guest at December 31, 2007 9:22 AM
Wells Fargo was the best for my co-op purchase. Competitive rate, worry free process, and great with customer relationships.
Posted by: guest at December 31, 2007 2:32 PM
We used Greenpoint which was fine, no troubles, but then, they sold it to Chase.
Posted by: guest at December 31, 2007 2:58 PM
I also have a mortgage with Wells Fargo. I refinanced my brownstone several years ago and they offered the best rate at the time and the service was good. As I stated before, stay away from Citibank. Good luck.
Posted by: guest at December 31, 2007 4:12 PM
We've done three properties with HSBC, and have had no surprises. Both our lawyer and accountant recommended them separately.
Sovereign is now here in NY, and we did an equity line on an out of state property with them, and I was impressed with their effort.
Posted by: guest at December 31, 2007 4:18 PM
I helped my son get a loan with Wells Fargo a year and a half ago through a broker. They were fine.
If you have income less than 90k and price of place is within a certain range you may qualify for below market financing through the State of NY Mortgage Authority.
Google "SONYMA" and read up. If you qualify the deal is absolutely fantastic even if processing takes an extra month.
Chase is very professional as well.
Good luck on your purchase,
Marion
Posted by: guest at December 31, 2007 4:29 PM
Like others have said, avoid Citi like the plague! Chase has competitive rates and their service is excellent, I'd go ahead with them without a second thought.
Posted by: guest at December 31, 2007 6:14 PM
I would definitely look at other banks-- Even if you have a good rate from Chase, there is no harm in getting other rate quotes. I was able to use quotes from other lenders to bargain my lender's rates down. I have heard good things about Washington Mutual (secondhand info only). If you are able to get the rates down by a quarter or an eight of a point, you will save thousands-- can't hurt to try to increase your bargaining power.
I am actually using Citi because my employer has a deal with their private banking service. So far I have found them to be fine, but I am a week or two from closing.
Posted by: cortnyc at December 31, 2007 6:19 PM
I had very good luck with Wells Fargo. Everyone commented on how smoothly the closing went.
Posted by: guest at January 1, 2008 4:19 AM
I'm very happy with chase, they were pretty quick. I did my refi with them about 7 years ago, no problems.
Posted by: funstraw at January 1, 2008 10:54 AM
HSBC was great.
Posted by: guest at January 1, 2008 12:55 PM
I would recommend using a mortgage broker from the area, because they know which banks are best for certain deals. They can contact ALL of the big banks faster than we can because they don't have to deal with those moronic customer service people in India.
My coop was 22% owner occupied and my mortgage broker (who I found on this forum) got me approved and closed in a month. Email me at raymo50@gmail.com if you want his contact info.
Posted by: guest at January 2, 2008 10:06 AM
Wells fargo I agree with as well I just had a similar situation with my apartment brian scott cohen from wells
646 584 8009
718 780 9132
Posted by: guest at January 2, 2008 11:12 AM
I don't think it matters very much, and the best you can do is shop for a good rate. More than likely, your loan will be sold right away, so you're not looking at service for "the life of the loan."
Posted by: guest at January 2, 2008 11:12 AM
I used Citigroup for my coop purchase a few years ago and had a very positive experience. Gave me the most competitive rate with a 90-day lock, which is what I needed for dealing with a coop board. That was 3 years ago, so maybe things have changed. Also, I went through their Smith Barney group at the time (which is no longer part of Citigroup. I am, however, currently using Chase for a new home purchase and they have been excellent in terms of rates and customer service. I called Citigroup for the same loan and it was almost half a point higher.
Posted by: guest at January 3, 2008 1:23 AM
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