Planning to reach out to banks for mortgage. Is negotiation done based on the initial quotes or the actual rates offered post credit pull? What’s the process? Does lenders want to see proof of the rates offered by other banks? How’s HSBC? Is there any other bank that I should consider besides HSBC, Chase, Wellsfargo and Citi? #mortgage #housing Thank you
Bank of America is very competitive too with the rates
Keybank. Also look at 7 or 10 year ARM.
Never take arm, if you are not planning to close loan within 30 years. If you topping another 30 year loan at the end of your arm period, you will be lot of interest. If you take 10 year arm next should be 20 year loan.
10 year ARM here. Next refi is 15 year fixed. But also up 500k on a 1.3M house. Selling is an option.
They will want to see proof, there's some sheet that's standard they send you and others want it. It's like a truth in lending sheet that covers everything with no bullshit. The only reason it exists is government regulations after 09. Even if banks say they will beat rates, they might not.
Got it. Is it something they issue only after application & credit check?
I don’t think there is negotiation with rates. It’s set by their HQ. You’ve got to shop around.
Its set by the bond market more accurately
Depending on the profit margin the bank wants to make. Prime rate plus x%
Look at relationship discount
Only way to get a better rate is get an estimate from another company that is lower, then bring it back to them and they can lower the rate using points which means your closing costs will increase, but you can bake the closing costs into your loan if you want. Since they started you at zero points they may be willing to add some points if you just ask and say youre looking for a lower rate. I just did this back and forth with two different companies i was actually serious about using until I did not want the closing costs to go any higher
Were you able to negotiate the price of the points? They can be a good deal if you’re planning on holding the house for 5+ years but can cost you in the short run.
I dont know I didnt try that
rate quotes wont mean much until you have a purchase contract and closign date ....get pre approved with one lender - once you have a contract - then call the lenders you are considering on the same day - get quotes and make a decsion to lock and proceed to closing ..hopefully the lender that provided the pre approval can be competititve
What rate are you getting ?
6.125% on 30 yr with 0 points - 300K mortgage
Fuck me. 6.125 %. During Covid it was 2-3%.