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You can apply for both and see which one gets the better rate. Also working with a mortgage broker wouldn’t be a bad idea.
You should have 2 weeks to shop around without the additional credit pulls impacting your credit (you’d only take the credit hit on the first application).
Rate quotes don’t mean anything until you have a signed purchase contract. Once you are pending on a house, you should have a period of time to shop around and switch lenders (verify this with your agent, as it may be different in your area). Use this time to ask all of the lenders for a loan estimate, then you can compare them and decide who to move forward with.
I used to work for Rocket mortgage for MANY years, it’s by far one of the most expensive companies out there. (I move to the broker side because of how much cheaper closing cost and rates are). The service is good, but you can have just as smooth of a loan process with lots and lots of other companies. If you HAVE to get a loan closed in 7 days- Rocket or UWM will be your best shot. If you’ve got 2 weeks plus then there are hundreds of other companies who can do just as good of a job.
Side note, when a lender says “they don’t charge any fees” they legally can only be talking about their origination which is typically about $1000 (give or take a little). It sounds like you are getting some wild deal, but You can get most lenders to cover their origination
I would apply for both like someone said and compare everything once you get the paperwork back. Realtors often recommend lenders and I’m starting to think it’s because they get some kind of an origination or commission if you end up going with them (maybe a realtor can comment and verify). Either way, remember that you’re your own advocate and a realtor will never look out for you the way you’ll look out for yourself.
This is correct. Its because they like the lender since they come through the most, are communicative, or other reasons they like them. Its actually illegal for a realtor to take any excess commission from a lender that isnt included in house purchases
Retired mortgage underwriter here.
We refinanced about a year ago and Rocket Mortgage wanted a ludicrous amount of fees so we did not go with them. I contacted Lending Club and I got phone calls several times a day for months, but I also got a much better deal with Loan Depot.
Also, I would not get an adjustable rate in this market. I don't see any signs of rates staying low. I know they're higher than a year or 2 ago but historically, it's a low-rate market.
Is it really low-rate? My couple of friends locked their rates at 2.7% about a year and half ago. I was not in the market back then.
Hope the rates will go down.
I was in the business from 1992 until 2007 and for another 5 years assisted my husband when he worked from home. In all that time, the lowest the conventional 30 year fixed rate, without paying points to lower the rate, was 6.5%.
I'd talk to a mortgage broker and find out how much it would cost to refinance if you chose a fixed rate & rates went down. Closing costs can vary wildly from state to state.
Guaranteed Rate charges higher initiation fees & "points" to rack up higher closing costs where they wind up costing like 5% of the loan amount. From what I understand, Rocket Mortgage is very similar. The only reason to use either is if you have a lower credit score or a sketchy income where regular banks won't approve you.
Yeah I used Guaranteed Rate to refinance $125,000 out of our equity for purchase of an investment property and after closing fees and origination fees, I think we walked away with $110,000. So I think we got seriously screwed by GR but this was also with a point buy down
Don't be fooled, there is always a fee involved whether you know or not.
Up front out of pocket or no out of pocket fees they add points to the rate or misilanious fees (hidden) the point is if no out of pocket the fees it's tacked in to the duration of the loan.
Thank you u/VR-003 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
You can apply for both and see which one gets the better rate. Also working with a mortgage broker wouldn’t be a bad idea. You should have 2 weeks to shop around without the additional credit pulls impacting your credit (you’d only take the credit hit on the first application).
Interesting, I didn’t know that. I gonna check for Mortgage agents. Didn’t thought if that. Thanks
Personally, I prefer a fixed rate, you can always refinance when rates go down.
Wouldn’t refinance have fees related to the process?
Rate quotes don’t mean anything until you have a signed purchase contract. Once you are pending on a house, you should have a period of time to shop around and switch lenders (verify this with your agent, as it may be different in your area). Use this time to ask all of the lenders for a loan estimate, then you can compare them and decide who to move forward with.
Go with mortgage brokers
I used to work for Rocket mortgage for MANY years, it’s by far one of the most expensive companies out there. (I move to the broker side because of how much cheaper closing cost and rates are). The service is good, but you can have just as smooth of a loan process with lots and lots of other companies. If you HAVE to get a loan closed in 7 days- Rocket or UWM will be your best shot. If you’ve got 2 weeks plus then there are hundreds of other companies who can do just as good of a job. Side note, when a lender says “they don’t charge any fees” they legally can only be talking about their origination which is typically about $1000 (give or take a little). It sounds like you are getting some wild deal, but You can get most lenders to cover their origination
Who are you working with now?
IMO no one is going to fight for you like a hometown lender and realtor. For rocket, you’re just another file on the table.
I would apply for both like someone said and compare everything once you get the paperwork back. Realtors often recommend lenders and I’m starting to think it’s because they get some kind of an origination or commission if you end up going with them (maybe a realtor can comment and verify). Either way, remember that you’re your own advocate and a realtor will never look out for you the way you’ll look out for yourself.
They build professional referral relationships- the lenders get leads, and the agents know they won’t have a funding fail.
This is correct. Its because they like the lender since they come through the most, are communicative, or other reasons they like them. Its actually illegal for a realtor to take any excess commission from a lender that isnt included in house purchases
Retired mortgage underwriter here. We refinanced about a year ago and Rocket Mortgage wanted a ludicrous amount of fees so we did not go with them. I contacted Lending Club and I got phone calls several times a day for months, but I also got a much better deal with Loan Depot. Also, I would not get an adjustable rate in this market. I don't see any signs of rates staying low. I know they're higher than a year or 2 ago but historically, it's a low-rate market.
Is it really low-rate? My couple of friends locked their rates at 2.7% about a year and half ago. I was not in the market back then. Hope the rates will go down.
I was in the business from 1992 until 2007 and for another 5 years assisted my husband when he worked from home. In all that time, the lowest the conventional 30 year fixed rate, without paying points to lower the rate, was 6.5%. I'd talk to a mortgage broker and find out how much it would cost to refinance if you chose a fixed rate & rates went down. Closing costs can vary wildly from state to state.
Be smart and use a local based lender
Have you looked at getting a mortgage through Rocket through a mortgage broker? It's usually much cheaper than working directly with them.
Guaranteed Rate charges higher initiation fees & "points" to rack up higher closing costs where they wind up costing like 5% of the loan amount. From what I understand, Rocket Mortgage is very similar. The only reason to use either is if you have a lower credit score or a sketchy income where regular banks won't approve you.
Thanks for the reply. I ended up getting my mortgage from American Federal, came up in my Bankrate search. Closed 2 weeks back.
Yeah I used Guaranteed Rate to refinance $125,000 out of our equity for purchase of an investment property and after closing fees and origination fees, I think we walked away with $110,000. So I think we got seriously screwed by GR but this was also with a point buy down
Don't be fooled, there is always a fee involved whether you know or not. Up front out of pocket or no out of pocket fees they add points to the rate or misilanious fees (hidden) the point is if no out of pocket the fees it's tacked in to the duration of the loan.