2 Comments

1. Kalliopy says:
   April 18, 2010 at 9:27 pm

   We went with Quicken Loans and were very happy with them. We found them online, but a representative came to our home to have us sign the paperwork for the closing. We would definitely go with them again in the future.
2. Philly Broker says:
   April 18, 2010 at 9:37 pm

   Be careful with any online lender for a purchase transaction. Quicken loans may be fine for a refi, but I’d think twice about if for a purchase….there’s just too many variables.

   Regarding the builder’s lender – how much higher is his rate versus other lenders? How about if he gives you $10k or $5k, how does that affect the rate? Are the incentives towards upgrades or towards down payment and/or closing costs or perhaps a combo of all? If a credit towards closing – do you need the money?

   Also, here’s some general info when comparing lenders:
   1. Always make sure you are comparing the same product – eg, 30 yr fixed rate vs. 30 yr fixed rate

   2. Always compare using the same down payment scenario – eg, 0% , 5%, 10% down, etc.

   3. Always compare with same purchase price

   4. Always compare using same timeframe to close – 30, 45, 60 days, etc.

   5. Always compare rates paying 0 discount points and 0 origination fee. Ask what their “par rate” is.

   These 5 steps sound basic, but you’d be surprised how many borrowers think A lender was better than B lender, but not realizing they were correctly comparing the numbers.

   So, if you skip any of the above five steps, you will not get a true “apples to apples” comparison, and the rate could be different.