Choosing my Lender
Filed Under ( Dave Ramsey, FHA 203K, Homepath, Lenders, Loan ) by Joe Somebody on Monday, February 14, 2011
Ive been through several different lending firms and services. The first was LendingTree. What a waste of time. I had lenders from all over the country trying to sell me their services. Sure I could have chosen the guy in Main or Colorado but guess what, I'll never meat this person. Getting a mortgage is a huge commitment. I want to know the person that I am dealing with. See their offices. Know that they are going to be there next week. And most of all, know that they are not going to sell off my loan to someone else. I want to deal with one person and one person only.
I wanted to go with a 30 year Renovation Loan. Also know as a FHA 203K or Homepath Renovation Loan. These can have several others names as well. These are just the two that I researched. As they allow me to put down as little as 3% of the total loan. Unlike a Conventional that is 20%. Of course Dave Ramsey would not approve. He wants you to put 100% down and pay cash. In my reality that is not possible. Houses are the cheapest they have ever been. By the time I save the amount, they will have already gone back up.
Ive looked at the Loan Amortization Schedule (breaks out your entire loan in detail). I will end up paying for the house twice over if I stick with the entire 30 year term. Of course this is why I plan to pay it off early.
The first lender I went with was Wells Fargo. The guy was real nice. Told me all kinds of things. Approved me for over 220K. I was thrilled. This was to easy. Then we started to get into the fine print. Ohh what a rip off this was. I felt like I was being hit with a professional scam artist. They were pushing to roll all the closing cost into the loan. That way I am only out of pocket the down payment for the house. Their closing cost was some of the highest that I looked at. No wonder they were trying to make it sound like a great thing. I am so happy I did not go with them.
I ended up going with a smaller lender called Stonegate Mortgage. They have been around for a long time so I knew they were not going to disappear. They also had the best terms and the closing cost was not as much as others. They were certainly not the cheapest but they treated me fair. Minus one issue. I had to pay for the appraisal guy to go back out to look at some repairs. I thought that was a total rip off since I already paid him $450. Asking $150 was a little outrageous for 10 minutes of work. I'll get into more of that later. Still trying to get the story current.
It was a simple process getting approved. Of course I didn't like it. They ask for a lot of private items. I understand why they want it. Helps them reduce mortgage fraud. But it still hurt. Just so you know, by the end of the process they will know everything about you. The term signing away your soul really hits home with a lender.
I prefer doing things face to face, especially when dealing with something that could effect the rest of your life.
Hope Stonegate works out for you. More often than not, I had to deal with real crappy service, even from the big league lenders.
I was approached on the street by a sales team from LoveFilm (A similar service based in the UK) however a friend recently signed up and they charge a killing for late fees. Anyway, they were far to keen to get my bank details so I had to humbly refuse their service.
Read these: http://workinghumor.com/quotes/dave_barry_homes.shtml
Good blog, bro
Good luck, luckily I will never have to go through the hassle of doing this
Wells Fargo is a joke. Bad mouth that company as much as you can. They are the biggest scam Artists on earth. When I first got a bank account they convinced me that you need to pay monthly to receive services that other banks offer FOR FREE. Scam company.
Sounds like stonegate was the best choice. But continuing to look around for better offers never hurts.
Take your time to make this decision, sometimes it's better to wait and make sure you trust everyone you're dealing with.
thats gnarly I didnt know they asked a shit ton of personal questions. Im glad you didnt get scammed by wells fargo though
I want to keep myself out of any kind of debt. THe idea of lending has only led me to believe you should avoid it at all costs. Too bad that's just not possible for most of us.
Hope this works out for you man, your posts are very helpful for future home buyers like myself.
Haha let us know when you get exhausted... buying a house is a lot of work.
yeaah ill probably never borrow a large sum of money
I'd prefer not to get a massive mortgage when I get my own place. And I'd definately want to do it face to face. Keep the info coming :) I'll thank you in a couple of years when I'm in need of knowledge on all of this.
Mortgage broker. That's where it's at dude. ONE Credit check.
Borrowing money from anyone is a pain, but its something we all have to go through of we want to own a home. Paying straight cash sadly is not an option for me or you.
NoMoreTrouble, agreed. I've never heard anything good about Wells Fargo. Everyone should evade doing business with them.
good luck, man.
good luck, im still a bit young to buy house, but its helpful for the near future
My mom has Wells Fargo and hates them
That's a story that teaches us a lesson.
fuck loans! >:[
@Para - I hope you hit the lottery then.
@Innov - I wish I could say that. But I cant see myself saving the money for a cash payment.
Glad to hear you found a lender you 'trust.' Be careful though, even if you do 'trust' him, it's a lot of money you're dealing with.
Good luck is all i got to say !