I was preapproved with Guaranteed Rate and went into contract last Friday for a 1.7m SFH. They quoted me bullshit rates even when markets went down last week due to Russian invasion and pushed me to buy points to bring interest rates down. At one point, the loan officer suggested its leave it or take it as there is no way the rates will be reduced. I guess they felt i will fold because i didnt not have other preapprovals and went into contract on a Friday with 21 day closing. 3% 7yr ARM 3.125 % 10yr ARM 3.5% 30 yr Fixed I knew i will get a better rate elsewhere. Took me half a day to fill out applications with Premier lending (mortgage was with Union bank) and also Citi. They both waived lender fees ~$1500 and offered these rates (last Friday) 2.75 % 7yr ARM 3% 10yr ARM 3.375% 30 yr Fixed No points. locked the 7yr ARM with Citi on Saturday which only went through this Monday. Here are my thoughts on lenders from my home buying experience, ALL LENDERS ARE SHIT: I was referred to Guaranteed rate by two of my friends who closed in 2021 and had extremely positive experience. As you can see, mine is totally opposite. They tried to screw me after i went into contract knowing i dont have other options. My feeling is for every buyer who gets offered market rate (yes thats what we assume is a decent deal, these sharks are already making so much money from market rates) lenders will screw 10 other buyers with exorbitant rates and thats how they make easy money. So dont trust any lender and alway be open to switching even in the last minute and lenders love these last minutes deals (in contract ones like my case) as they get to make money with very little upfront work. GET MULTIPLE PRE-APPROVALS AND LET LENDERS COMPETE FOR YOUR SERVICE: Lenders are sharks when it comes to making money off you. So, the least you can do is get multiple preapprovals and let them know that if you get a bullshit rate you can easily switch. They will know you are working with other lenders by monitoring your credit which they do until loan is closed. I would suggest getting 2-3 pre-approvals with different types of lenders (big banks, mortgage brokers, online lenders etc). You dont have to worry about your credit score if you do multiple same type inquiries with in a 60 day period. They all count as one. So, get on top of the game and let these assholes compete to give you a better rate. SPREAD THE WORD: Finally, spread the word about your learnings with your friends, colleagues and online communities. If not for blind i wouldn't have known or built the confidence to switch lenders after going into contract for such a big loan with short closing period. Cheers! #mortgage #housing #bayarea
I had no idea about the multiple inquiries fact. Thanks!
Always be negotiating
So did you have to ask seller permission to change lenders after mutual?
Tldr: always negotiate (obviously) but don't take an arm (obviously)
If your TC is high and you are sure to pay it off in 5 years why is 7 or 10 arm a NO ?
Dude, it's a 1.7 mil house. Loan is probably ~1.4 mil.
Also save money by not buying buyer title insurance
Rates are so volatile, like the stock market. Difficult to decide when to lock in.
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