We have signed the contract to buy a $595,000 2BR brownstone apt w/ 20% down. The mortgage broker initially said (a few weeks ago) that we would be able to get a 5.65% loan with no points. He called me today and said b/c it is a jumbo loan ($472,000) in a 3 unit condo that it is most likely going to be a 5.75% loan w/ half a point. He said that he came to this conclusion after checking with various lenders.

We are first time buyers and I am happy to listen to this guy b/c I know going through a single bank could be problematic.

Also, I know that it is difficult to get loans at the moment and maybe this is typical, but I just wondered if his numbers sounded about right for this sort of purchase.

We have excellent credit (755) and decent income (150k) & hope to close by the end of the month.

Any advice much appreciated.

Thanks 🙂


Comments

  1. check out mortgageefit.com or http://www.bankapedia.com/forum/
    you can connect with lenders on the site and in a lot of cases not have to be bombarded with calls you can usually just ask a question and get an answer.

    My guess is this is where mortgage sites are heading. The LendingTree model is dying.

    Just my $.02

  2. We used HSBC direct, they were pretty good. Definitely check with whoever you bank with, often they’ll give you a discounted rate if you also have your checking/savings accounts with them.

  3. Funding in house? What does that mean?

    Honestly, you’ve gotten far enough that you ought to just call a few banks. It is a ten minute conversation at this point: “My income is a, I have credit score of b and cash reserves of c. I’m in contract to pay $x for a condo in a three unit building in Brooklyn. I’m wondering if you can do better than 5.75% with a half a point down?”

    The answer ought to be “yes” or “no.”

  4. Blimey. Not sure I stand a chance at the banks if removing a window security guard puts a spanner in the works lol. Maybe I’ll just have to take the 5.75 & 1/2 point 🙂 Esp. if they are funding in house.

  5. The window security guards do not have a safety latch so under their guidelines its against the fire code even though there are 2 exits on the floor (front and rear door).

  6. agree with other posters on the fact that you can often do better dealing with the banks directly. don’t forget to try the regional banks, such as astoria..

  7. Thanks so much for the advice! It certainly looks like going to the bank directly could be problematic. They don’t seem to want to touch 3 unit buildings.

    Calling around to other brokers though to see if they can better the rate & terms.

    Thanks!

  8. I agree with the other posters..definitely call a couple of other banks. There is no need for a mortgage broker. Try giving Wells Fargo a call, they are very competitive with their rates and would pretty much match and beat any bank mortgage rates.

    Before you commit to a bank, make sure the mortgage specialist knows exactly what type of property you are buying. Wells Fargo is very strict as far as the guidelines and commitments compared to any other banks. e.g. They made us remove our window security guards or we could not get the mortgage while other bank (HSBC) would probably care less.