All Forum Posts by: C L.

Adding my 7 cents on the mortgage broker issue.

Look at it this way. When you walk into Bank of America, you will get rates/fees quoted for Bank of America's programs. When you talk to a broker, you can get the rates/fees quoted for numerous lenders.

Mortgages are much like any other product when it comes to looking at options. When I visit Home Depot, it is to my advantage to see more than just John Deere lawnmowers. On the other hand, if Home Depot only sells John Deere, then they have the incentive to sell me John Deere, whether it's good for me or not.

As Financexaminer stated, I CAN knock the socks off a bank when it comes to pricing - 90% of the time. The other 10% of the time, I can knock maybe one sock off. :-)

In the world of money and investing, nothing is 100%. With mortgage approval, it depends on your situation and application. I have had borrowers turned down flat by Bank of America, yet get a solid approval from me as a Bank of America correspondent - and at a great rate. Weird I know, but it happens. Bank of America will turn down their own depositors when they come in the door for a mortgage loan.

I don't want to get techy on you, but don't rule out a broker right out of the gate.

Have you tried asking for a mortgage referral from friends, family, co-workers, realtor,..?

As with any loan, of course there will be a max you can borrower based on your credit, income and other debts.

If you change the home you want to buy or the amount you want to buy, yes, that could change your approval because after all, you changed the collateral.

Yes, pay down your credit cards so that balances are never more than 30% of the limit.

And very important. You did not say if that other card is a Visa or Mastercard. If you do not have a V/MC, you should apply for one. As someone stated, go secured if necessary.

Good luck.

Ditto. The name has a nice "rhyme" to it. :-)

I will be using my name in my business. I want people to see I have nothing to hide. Works for me.

Just getting started, but I have told everybody walking what I'm doing and always will.

Won't discuss any financials, but will talk about the business. Already got 3 birddogs - kinda.

I will never tell people or make the implication that I don't work hard. No need to create any haters either.

I'm a Mortgage Consultant by day and I have to say you have not given all the facts in order to answer your question.

What rate you can get is affected by a host of things like your credit score, exactly how much equity you have, escrow (no escrow), and the loan amount.

If your current lender is willing to do the loan w/o a full appraisal, then I have to presume you are working with a portfolio lender (meaning your new loan will NOT be Fannie Mae/Freddie Mac). No way you're going to get a Fannie/Freddie loan w/o a full appraisal - with one exception and that couldn't apply in your situation.

And what that entails is you will probably pay a higher rate w/o Fannie/Freddie backing. The lender may be saying the appraisal is no charge, but they have that price all wrapped up in your rate. If someone is driving by your house, you will pay for it in the end - unless you cancel the transaction.

You also did not mention how long you have owned the property. For Fannie/Freddie, you cannot do a cashout refinance and use the appraisal value until you have owned the home for at least 12 months.

It matters a heck of a lot whether the loan will be primary or for an investment property. Its apples and oranges. If you want to refi a primary, the rate COULD be much lower depending on everything else on your app.

Deciding that a home is or will be your primary residence can be a nightmare these days because underwriters tend to disbelieve the borrower. Borrowers have been caught being dishonest about this countless times. Be prepared for a whole new can of worms if you intend to "say" it will be your primary while you still own and live in another property.

Sorry I can't be more helpful about the rate. I can only say that for an investment property, if you have great credit (over 720), at least 25% equity (AFTER) the cashout, a loan amount if at least100k, with taxes/ins escrowed, and a non-portfolio loan, the rate could be lower than 6.5% as of Friday, 2/18.

But sounds to me like you are working with a private lender and they might be giving you "their" deal. That makes it more difficult to compare from one bank to the next. Get the Good Faith Estimate and look at the fees. That's a start.

Realize that if you have not owned the home for 12 months, do not have a high credit score, and do not want to have a complete appraisal, you will pay a higher rate for that portfolio loan. That bank's process might get you into the loan quicker and easier, but it will not be cheaper.

Lastly, new Fannie/Freddie/FHA loans require the borrower to give a copy of the complete tax return for the prior year. A portfolio lender might not require it. Oftentimes, people have entries on a tax return that kill the mortgage approval.

Nothing easy about mortgages in this environment.

Good luck.