Ask HN: Any of these startup mortgage companies better than traditional lenders?
I'm drowning in reviews on Nerdwallet and trying to figure out what is the best option. Better Mortgage seemed decent but had poor reviews and horror stories and not sure if it's offered in my state. It seems a new one of these pop up each week - but I've enjoyed a lot of the financing options like Betterment so it can be done.
Obviously the most important factor is getting the lowest rates and closing costs. I do appreciate a nice UI for making my payments each month though and seeing pretty graphs. But this is for a $300,000 purchase so I don't really feel like increasing my interest rate by 1% because I'm a UI snob.
This is also new construction so I can't have delays working with the mortgage company as when they start building if things aren't all handled properly I'm being charged daily.
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Ask for Loan Estimate from a couple different lenders. They have to provide you one by law. Also, just look at the APR. It basically converts closing costs, mortgage insurance to rate.
Problem is the longer you lock the more lenders charge.
And rates go up and down every day.
Also, are you doing a construction loan or the builder owns the house until you close?
They're handled differently is why I'm asking.
Sorry Legal Disclosure. I probably don't need to disclose since it's just advice but better to be safe than sorry.
Robert Snyder II - NMLS 1594016 BancOhio FINANCIAL - NMLS 181032
It's in a big new development and is a townhouse. A few have been built and are progressing through phases. I get to pick a few layout options so I think they are treating it as a new construction? Maybe? Edit: Actually it might be purchase. I have the home purchase agreement that I'm reading over if it's in there.
http://www.2getpreapproved.com
or you can email me using the email in my profile.
Also, here are some good flyers from Fannie and Freddie regarding conventional programs versus FHA:
https://www.fanniemae.com/singlefamily/homeready#
http://www.freddiemac.com/singlefamily/docs/home_possible_ad...