New York City · Member since 2018 · 161 posts · 75 votes
For a conventional loan? I understand the difference between getting a loan from a mortgage broker and a lender from a bank that has an investment focus but is there a sizable difference between lenders in the same category when it comes to conventional loans?
In terms of mortgage brokers, what would the difference be if I used Ridge lending vs Highland residential mortgage vs SNMC? Wouldn't the price of points and rates be relatively equal?
In terms of bankers what would the difference be if I went with MSI Financial vs some other small banking institution (I don't know that many others. I only know the one that I have used) Wouldn't rates, point cost be relatively the same?
I can only imagine it would be the closing fees, but that shouldn't be a huge dollar amount anyway right?
Lender · Chicago, IL · Member since 2015 · 14 posts · 5 votes
7y
Wei, I am a mortgage broker in chicago and there is s huge difference between brokers vs lenders vs banks. I would try to find a broker in your state and your rate Would be significantly lower. Even within brokers there can be a difference so make sure you do your due diligence. If you want a referral for my area let me know
New York City · Member since 2018 · 161 posts · 75 votes
7y
The rate would be lower if it's local? So if I were to buy a property in Chicago and have a lender that is located in Chicago, I would get better rates/and or lesser closing costs than if the lender was located in Tennessee or Florida or Texas? Mind if I ask why that would be? I'd get it if it's for a portfolio loan, but wouldn't conventional loans all be...I can't think of the wording, but the same rates apply everywhere.
Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
7y
@Wei Jie Yang - mortgage lenders are typically the best option in my opinion. They operate like a broker (lots of outlets, which means more programs than a bank and often lower rates), but they are the direct lender (which makes them a bit easier to work with and more predictable/reliable compared to a broker). Regardless of banks vs mortgage lenders vs brokers, rates and fees can all vary. Some lenders are more aggressive than others, and that also depends on the deal specifics and what type of loans the lender is looking for/specializes in. That said, if you're buying in a big city like Chicago, New York, Boston, etc., where property types aren't always run of the mill and the way of business is a little quirkier compared to mid-sized and smaller cities, then I'd recommend going local. Will often result in a better rate, and better overall experience.