Mortgage question

[devilsfan]

No problems qualifying. We've always gone with bank financing in the past because of the stability of banks. We got a good deal with Bank of America, but we've been offered slightly better deals (3/4 %) with 2 private lenders who specialize in jumbos. I was wondering if there are any negatives with going with a private company versus a bank - ie, if the company folds, is bought out, etc.

Stacy

[KenP]

Contact Adam. I'm sure he'll set you straight.

[DRTYFN]

Yes!! Contact Brother Adam.

[K9sH3]

Wheres Adam when you need him... Most def get with Adam in CO


Oh and I went with a private company over BOA Military branch.. Not a problem and I still have a great banking relationship with BOA

[CO Hummer]

X1000 on the Adam thing. But deal only with Amanda and the hot babe he sends to your house to sign the paperwork.


Who cares if you get money from a shaky lender? If they go out of business, what's the worst that can happen? You don't have to pay 'em back?

Wow. First I put DRTY out of business, then Adam. What's next?

[K9sH3]

Originally Posted by CO Hummer

Wow. First I put DRTY out of business, then Adam. What's next?

Loan me some money so I can put the guy I work for out of business, and build a better business than his......
That way you can have that credit too.....

[CO Hummer]

Originally Posted by K9sH3

Loan me some money so I can put the guy I work for out of business, and build a better business than his......
That way you can have that credit too.....

I've been thinking about getting into the helicopter business. Right now, it's only a hobby.

[DRTYFN]

Originally Posted by CO Hummer

X1000 on the Adam thing. But deal only with Amanda and the hot babe he sends to your house to sign the paperwork.


Who cares if you get money from a shaky lender? If they go out of business, what's the worst that can happen? You don't have to pay 'em back?

Wow. First I put DRTY out of business, then Adam. What's next?

You forgot how you put Aubs out of business. You really are creative with those self portraits of yourself & the feather-dusters.

[K9sH3]

CO, These guys are my spotters and I want to keep them in business.

[Dug]

Originally Posted by devilsfan

No problems qualifying. We've always gone with bank financing in the past because of the stability of banks. We got a good deal with Bank of America, but we've been offered slightly better deals (3/4 %) with 2 private lenders who specialize in jumbos. I was wondering if there are any negatives with going with a private company versus a bank - ie, if the company folds, is bought out, etc.

Stacy

Stacy in your first question you said private mortgage company , and in another you said private lender. I just wanted to say , make sure your dealing with a licensed in your state "private mortgage company". If you go with a "private lender" as in a person, you run more risk of getting hosed. If you did go with a private lender "person" make sure your attorney reviews the contract. You dont want some language in the contract that slyly says if the lender gets a hair across there ass they can call the note for no reason. I am not a banker , but i have done alot of loans for deals and been to the school of hard knocks. Good luck.

[mikejr]

Basically what you need to do is get a GFE (good faith estimate) from a few lenders and make a decision based upon the total scenario.

You need to take a look at the closing costs, escrow requirements and naturally the rate that you will be paying.

Just be wary of the killer rates at they are usually making it up on the closing costs.

Also, you can NEGOTIATE the rate. Remember that the originating entity is going to make money on all the junk fees that they charge like underwriting, processing etc and they are also making money on what is called the yield spread....in other words....they "buy" the loan at 6% and "sell" you the loan for 6.5% and they get paid a commission based upon that difference in interest rate.

Remember that the vast majority of bank/mortgage brokers/mortgage bankers sell their loans in the secondary market. So there is a very high probability that you will not have your loan serviced by the entity that originated it.

I am speaking from 15 years of residential real estate brokerage experience. Also, try to stay away from the "online" banks. They are just too difficult to deal with.

Should you have any questions that you want to ask me in a more private forum, just PM me.

[devilsfan]

Thanks Dug - that was it. Adam clarified everything for me as well. We have a couple of options that ARE private lenders - ie, individual investors. We're going to stick with a private COMPANY or a bank, we're not willing to take that big of a risk.

We have quite a few quotes now, we've narrowed it down to 3 and are letting them play out a bidding war, basically.

Stacy