Mortgage offer evaluation- my fist home in Sacramento

22 Replies

Hello all,

I am trying to buy my firs home in Sacramento and was pre approved for 420K.

Im not sure I got a good offer from my broker agent. Would like to get some opinions or if there are other mortgage broker who think can give a  much better offer please contact me back!

The offer:

Approved for 420K sales price
Rate type: Fixed 30 years
Base loan amount: 336,000$
Intrest rate quote te (803 Fico) 2.999%

Lender Costs:
Cost/Credit for Rate: 1,532$
Admin/Underwriting Fee: 1,055$

Thank you!

@Gitit Hefetz you did not mention the LTV and loan program. Is this standard 20% down conventional ?

2.99 is pretty good and I will tell you, shopping for a .125% better pricing on a loan isn’t going to be effective. Make sure the closing costs are low and it’s a solid deal.

If this is for 20% down conventional, then you o.k. FICO above 760 is helping you, nice. For another $700 or so, you should be able to get 2.875%. Did he/she run that option with you? Drama starts at  2.750%, not worth it.

Thank you Eric, 
Yes, it's a a 20% down conventional loan.
I wasn't sure about the lender costs, is 1532$ cost/credit for rate is decently priced?. I never toke a mortgage before so have no Idea if this make sense...
Thanks again!

Cost and Credit are two opposing things.  I’m assuming that is a $1532 lender Cost.  I am not a lender or broker, but I watch and shop rates quite a bit, and that sounds like a very reasonable and good cost and rate.  One of the most transparent sites to gauge good rates/fees is www.aimloan.com.  I am not affiliated or anything, they just have a great website and very competitive rates and fees, and their anonymous quote system is very quick and easy to use.  

Their site is quoting 3% for $2675 in lender fees and points (plus additional for title/closing, etc), so assuming the remaining costs are the same, then its a pretty good deal. The other poster is right, you can ask for a HUD-1 type statement showing all fees, which is what aimloan's website will show you for each quote under "details".

Another great lender who recently did my refi was Owning.com. Ask for Will Wilke.  He was great and they closed in 3 weeks!  Again, I have no stake in these companies, just my honest experience with them as I have used them both.  

Thanks!

Andrew 

This is UWM's Conquest program, currently a plurality of my buyers are using it. I'm signed up with some 3 dozen lenders, but sending more business to that lender, using that program, than anything else. That is, unequivocally, the killer mortgage product of the season. Available for refis too.

There are other wholesale lenders with very similar rates, what sets UWM's Conquest apart is the how freaking lightning fast they are closing them. In this very competitive market(1), that is a HUGE way to set yourself apart. 

They expanded the program to include VA loans not too long ago.

(1) I'm all of a sudden doing a bunch of business up in Sacramento as people move away from the core SF Bay Area markets like Oakland, Sac isn't a slow dreary real estate market -- at least not any more. 

Congratulations on your approval. I Have been trying for about a little over a month and no luck. The first lender said that i should save a little more money, so that slowed me down. Then I decided to try someone else and they were hard to communicate with and now I set an appointment with a third lender. I sure hope my luck turns around.

Originally posted by @Ulisses Terriquez :

Congratulations on your approval. I Have been trying for about a little over a month and no luck. The first lender said that i should save a little more money, so that slowed me down. Then I decided to try someone else and they were hard to communicate with and now I set an appointment with a third lender. I sure hope my luck turns around.

 Unfortunately sometimes it can be hit or miss, were you trying big banks or local mortgage lenders/brokers?

@Gitit Hefetz ...you've had some good responses to your posts.  Being a mortgage broker in Sacramento, it seems to be in line.  However, given where pricing is at the moment and where it's been heading, given the cost mentioned, you should be able to get lower than 2.99%...I'd bring that up if it's not locked, which it sounds like it shouldn't be. TODAY (JULY 9TH, I'm giving credit @ 2.99%). Thanks,

@Gitit Hefetz I also tell my clients to get two loan options, you appear to be an A+ candidate, that can be leverage :)

Also for what its worth that loan you have looks great

Originally posted by @Ulisses Terriquez :

@DJ Dawson you mention a second loan option, do you mean going threw the pre approval process with different lenders or just giving them my numbers and talk to them and see what numbers look better? 

Thank You!

 yup!! If you need a contact for a solid lender send me a DM

As some people have mentioned, I would challenge you to shop around. Send your info to several banks. I did this and it has taken a few but I have found two potential lenders. At the end of the day they will be competing against each other. One currently has a rate offer of 2.0%!! For owner occupied 4-plex. That is just nuts. While on the flip side, the first person I contacted was at almost 4% for an owner occupied 4-plex.

It is a free market and they all want your business. They all have wiggle room. Send them what other lenders are offering and ask if they will beat it. Odds are they will.