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September 23, 2009
Recent Mortgage Experiences?
Anyone close on a property recently? Using Wells Fargo or HSBC? We are nearing the end of contract stage for a single-family house. I have found Wells Fargo and HSBC to have some pretty low rates right now. (Wells Fargo @ 5.375 and HSBC @ 4.875)
Does anyone have any recent experience with getting a mortgage from either of these banks?)I've heard rumors of many banks having a hard time coming to closing and I'm wondering if this is true of either of these banks. Over half a year ago, a different purchase fell through. We were going through Wells Fargo on that one and the broker seemed pretty on the ball (though we never got to closing because of CoO issues with the house.) But 0.5% difference in rate is pretty big, no?
Comments
That is a big difference between 2 banks. Did you read the fine print and make sure that is not with points.
HSBC is very conservative so make sure you you are actually greenlit for closing.
I did Sovereign. Other than the wire transfer to lawyers escrow being late my rep was great.
Posted by: crimsonson at September 23, 2009 1:52 PM
Hi helppls, I am currently going through a broker who was recommended to me. He has been excellent so far and as a first time buyer I have no complaints (so far!). We are hoping to close at the end of October. I thought about going through a bank, but at the end of the day, it is a 3 unit condo and he offered me the best opportunity to close.
Let me know if you would like his contact information.
My email address is: cfrankland@gmail.com
GL!
Posted by: kissiffer4 at September 23, 2009 2:02 PM
I had an EXCEPTIONAL experience with a gentleman named David Roma at East Coast Capital - he's a mortgage broker. He is always available to answer any questions and will hold your hand through the entire process. He's not at all pushy which I really liked. It's definitely worth giving him a call - 877-781-7788. Tell him Andrea and Anthony sent you.
I highly doubt that you would get a rate of 4.875 without buying the points down. If you are purchasing with a seller's concession, no money can be left on the table so you could use any difference to buy down the points - that's what we did and it saved us about $200/month.
Posted by: bedstuytownhouse at September 23, 2009 2:13 PM
Just closed on a 15 year.. SFR. 4.5 no points.
Used a broker that came highly recommended.
Sometimes thats the easiest way to go.
Posted by: big swinging nick at September 23, 2009 2:33 PM
I closed in May using HSBC on a contract that was signed Jan 9th. 4.875% with no points. I had 40% down, and several accounts at HSBC and they were still annoying. I don't know if it was my particular rep or HSBC in general, but the customer service was terrible. Someone had recommended a mortgage broker from Prudential, but the RE broker I used told me to go with a bank because it would be faster than using a broker. He couldn't have been more wrong. I will not be using HSBC for my next purchase. I'd go with WFC or a broker if you have those options.
Posted by: BrookLynn at September 23, 2009 3:03 PM
i have a feeling hsbc will be annoying, but im preapproved for a really good rate.
Posted by: slick at September 23, 2009 3:29 PM
OP here again. We have excellent credit and are putting 20% down and have only been looking at rates with 0 pts (to make comparison purposes easier.)
The 4.875% HSBC rate IS reduced by discounts they are offering. Their standard rate is actually 5-1/8%. So not too far off of Wells Fargo's 5.375% rate. The guy told me if we were HSBC premier member (and we are) it would be a 1/8th% discount. AND if we signed up for autopayment it would be another 1/8% discount.
I'm only a little concerned about the "convervative" point crimsonson brought up. On the last go around, we put in a whole application and got a mortgage commitment from Wells Fargo. So this guy knows all of our background already (hubby is has been self-employed for the last 6 yrs etc.) Maybe this might not fare well for HSBC and we should stick to a company that had promptly sent out an appraiser in our last go around and promptly gave us a commitment letter etc. OR are there other truer tests of competency still??? Basically yeah, we are weighing chasing a rate and wanting to be sure we CAN CLOSE on the house before the end of the year!
OMG, I won't even go into my awful experience with a mortage rep from Sovereign. This lady hardly ever returned my calls and if she did, she was driving or had kids screaming in the back. It was the most backwards, unprofessional mortgage person I have talked to...
Hey Brooklynn, how did you manage to keep a rate lock for 4-5 months with HSBC - don't they only hold for 60 days. Or did HSBC extend it because it was their fault?
Slick, you get that feeling too, eh? There is a part of me that thinks this too... Oh and rates given during preapproval doesn't really hold by the time you get to contracts, does it?
Posted by: helppls at September 23, 2009 3:53 PM
Examples of HSBC conservatism BEFORE the Bubble:
70% sold for condos (a lot of the banks at the time would do 50%)
Condo board must be owner controlled (difficult in the first year of operation)
They pre-qualify us at 5:1 income ratio while another most where willing to do 6:1. We end up using only 3.5:1
After the bubble they actually stopped for a while giving mortgages for NY condos.
If you are going with HSBC make sure ask all the necessary questions. Obviously if this a tradition house (not co-op or condo) with 20% down at 4:1 ratio I doubt they will give you a hard time.
Posted by: crimsonson at September 23, 2009 4:08 PM
crimsonson, remind me, what is this "income ratio" you are talking about? Are you talking about debt-to-income ratio?
Posted by: helppls at September 23, 2009 4:23 PM
We used HSBC. It was fine, they were a little particular about some things (they did insist on unit owners controlling the board as crimsonson said for instance) but the loan officer we worked with was pretty responsive and pretty helpful in working through the stuff. Some banks may be easier but seems like your lower rate should compensate.
Posted by: woodys at September 23, 2009 4:45 PM
Be carefull with HSBC. If yuo ever need/decide to refinance they will not allow the assignment of the mortgage (CEMA) to another bank and you are basically forced to use them or pay the mortgage tax again.
I worked for a direct lender for years and I recently left for another firm that banks and brokers loans. I'm brokering more loans now than banking as it's actually an easier process I've found and I have more options. It was really hard to leave working for a direct lender but I got tired of the bending over backwards that they make you do.
Are you getting a Jumbo loan? 5.375% sounds a little high for a true conforming loan. Condo? Coop? Multi-Fam? These are all things to consider when looking for a lender.
Posted by: Adam Dahill at September 23, 2009 7:46 PM
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