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Home Loans?

Would you use a lender (ie: Lending Tree) or a bank for a home loan? What have been your experiences with home loans?

I'm re-visiting a home loan option. I went to my credit union [of seven years] and asked about a pre-qualification for a home loan. I was told I would pre-qualify for $48,500. That was also a VA home loan. There aren't any homes in my area under $50 that would qualify for a VA home loan. So, we're considering going to a local bank (where our income goes; my VA monthly compensation goes to our credit union) and seeing about what we could get there.

Another option is a private lender. This private lender is vouched for by our best friend (he and my husband have known each other before they could walk/talk).

 
_Tam_

Asked by _Tam_ at 8:54 AM on Oct. 26, 2010 in Money & Work

Level 30 (42,083 Credits)
This question is closed.
Answers (6)
  • It doesn't hurt to explore the private lender, make sure that you look at the BBB rating, and Google them to see if anything has been on the news about them. I don't know if it's still common, but it used to be that going with a private lender meant that your loan would be sold, sometimes more than once. It doesn't change the terms of your loan - but instead of working with someone you trust and are comfortable with you end up with B of A.

    Scuba

    Answer by Scuba at 9:09 AM on Oct. 26, 2010

  • We found a house that suits our needs perfectly. We were even able to figure out the monthly mortgage payment, including taxes and such, and that amount is a whopping $5 more each month than what we're paying now. The home we're looking at has 1,836 sq ft and we're currently living in a home that's 560 sq ft.

    I paid off my car loan earlier this year. I have ONE credit card (with the credit union) that I'm still making [minimum] monthly payments on. I have a student loan that I start making payments on around January next year. My name has been on our bills for the last few years, with his name being on a few. I have debt from the past five years that has been paid off completely.
    _Tam_

    Comment by _Tam_ (original poster) at 8:54 AM on Oct. 26, 2010

  • I had always heard you get better rates/more flexibility from credit unions than banks/private lenders. It was true in our case that we got a lower rate from our credit union, so we went with them for our mortgage.
    missanc

    Answer by missanc at 9:25 AM on Oct. 26, 2010

  • As I've mentioned (or maybe forgot to put it in the main post), I tried for a home loan pre-qualification with our credit union. Based on what I knew of my credit history, assets, and net worth (what was currently in the account), I was pre-qualified for a VA loan of $48,500. This will get you a POS home that isn't even covered under the VA loan pre-requisites. When we moved here, we opened a checking account with a bank that was recommended to us. I think you have to be a member of a credit union to get a home loan from them.
    _Tam_

    Comment by _Tam_ (original poster) at 10:40 AM on Oct. 26, 2010

  • I would ask your realtor. They usually know who is offering the lowest rates and can even tell you who to talk to.
    HotMama330

    Answer by HotMama330 at 12:26 PM on Oct. 26, 2010

  • Makes sense, HotMama, but I have no realtor looking for houses for me. =(
    _Tam_

    Comment by _Tam_ (original poster) at 12:45 PM on Oct. 26, 2010