Best Home Loan Lender??

[MilitaryDO]

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Anyone have a recommendation for a home loan lender? I plan on buying soon in the San Antonio area (Matched EM at BAMC) and I want to get the best rate with the least fees. I know there are some "physician" loans out there but being new to this process, any help would be greatly appreciated. Thanks!

 

[resxn]

VA loan if you qualify and you're doing zero down.

I used SunTrust Mortgage for mine and got a pretty good deal. Go to bankrate.com and find out the average rates in the San Antonio area. Mortgages are so competitive the difference b/w quotes is not likely to be very substantial, but $100 here and there can make a difference especially in residency.

 

[Ex-44E3A]

Did USAA for my first house... they were very good.

 

[DD214_DOC]

Did USAA for my first house... they were very good.

👍 for USAA

 

[The White Coat Investor]

I did a lot of shopping around and ended up with USAA. The service and the rate have been flawless. However, I used a relatively straightforward loan, conventional 20% down 5/1 ARM. If you are seeking something exotic, you may do better elsewhere. The problem is that those who need the exotic loans (interest only, balloon etc) are generally those least able to understand when they are getting a good deal.

Keep in mind that just because a loan is called a "Doctor's Loan" doesn't mean it is a good deal for a doctor.

The best way to get a good deal on a loan is to put money down. If you put less than 20% down you will either pay PMI (insurance for the mortgage company in case you default) or you will pay a higher rate on the loan. A quick example from 6 months ago when I was buying my house:

If I put 20% down, my rate was 6.25%.

If I put 10% down, my rate on the first mortgage was 6.75% and the rate on the second mortgage was 7.75%.

A 0% down loan would have probably run me about 7-7.25%.

1% is a big deal. On a $200,000 loan over four years we're talking about $8 Grand.

If you really want to learn about mortgages, go here:

http://www.mtgprofessor.com/

 

[bogatyr]

I likewise used USAA, after checking lendingtree.com and found the rates to be competitive. USAA gave me the same rate with no PMI with only 10% down. I also had a good experience with Charles Schwab online bank. Bank of America and Compass bank both have physician loans in which you can finance 100% (not 80/20) with no PMI. Just contact a few places and ask for a good faith estimate.

 

[The White Coat Investor]

Bank of America and Compass bank both have physician loans in which you can finance 100% (not 80/20) with no PMI. Just contact a few places and ask for a good faith estimate.

Yes, but not at the same rate as if you put the 20 (or even 10) down.

 

[MilitaryDO]

Thanks for all the advice, i'll let you know how it goes!!!

 

[RugbyFool]

Has anyone here used Bank of America as a lender?

 

[Doogie124]

I shopped around and ended up going with Bank of America where I got 6.125%, which I found to be very low for a 100% loan. Plus it's just one loan and has no mortgage insurance. I recommend it. Here is the blog of the guy I used, he specializes in the doctor loan: http://doctormortgageloan.blogspot.com/

Good luck!

 

[Lesley]

U S A A; great comprehensive service; they recently offered a 30 year fixed rate mortgage, 5.75%, with 0 points and $1,430 premium pricing (a credit applied at closing). Rates change often. You can check their website to see what the rates are at any given time, plus you can sign up for mortgage watch and they'll e-mail you the rates daily. Good Luck!

 

[The White Coat Investor]

I don't know you Doogie and haven't researched your post history, but the fact that you resurrected a year old thread along with an advertisement for a loan salesman is a little suspicious at best. Never mind, I just researched your post history (1 post.) The moderators have asked that you give a little information about yourself prior to advertising here, Jeff. By the way, according to your website you don't give loans to optometrists, so how is it that "doogie124" the optometrist qualified for a loan with you? Unless of course you meant to say optometrist on your website instead of ophthalmologist. Either way, nobody likes someone pretending to be someone they're not. How can people trust your advice on mortgages if they can't even trust you to say who you really are? Here's the thread where you should have put your first post:

http://forums.studentdoctor.net/showthread.php?t=453685

 

[deleted126335]

.

 

[DoctorWannaBe]

I likewise used USAA, after checking lendingtree.com and found the rates to be competitive. USAA gave me the same rate with no PMI with only 10% down. I also had a good experience with Charles Schwab online bank. Bank of America and Compass bank both have physician loans in which you can finance 100% (not 80/20) with no PMI. Just contact a few places and ask for a good faith estimate.

How do you find more information on the doctor loans offered by BOA and Compass? I couldn't find anything on their website other than traditional loan information.

 

[jane70]

How do you find more information on the doctor loans offered by BOA and Compass? I couldn't find anything on their website other than traditional loan information.

I've looked on BOA and Suntrust's sites and haven't found anything specific either. Who are all the lenders that offer this doctor loan?

 

[Universe_Explorer]

I've looked on BOA and Suntrust's sites and haven't found anything specific either. Who are all the lenders that offer this doctor loan?

I was confused about this for a while too, but eventually I started getting pamphlets in the mail from BOA mortgage officers focusing on the Doctor Loan. Are you a 4th year? I started getting them just after the new year. PM me if you want me to send you the name/number. My only issue is, none of them are located anywhere near where I live now, or where I hope to live soon - does this matter, or can I still go through them? I haven't gotten any info from SunTrust yet.

 

[jane70]

I was confused about this for a while too, but eventually I started getting pamphlets in the mail from BOA mortgage officers focusing on the Doctor Loan. Are you a 4th year? I started getting them just after the new year. PM me if you want me to send you the name/number. My only issue is, none of them are located anywhere near where I live now, or where I hope to live soon - does this matter, or can I still go through them? I haven't gotten any info from SunTrust yet.

I just got a postcard from bank of america in the mail....It's strange it's not so easy finding information about these loans online. I haven't gotten anything from SunTrust either and don't see anything on their site. Anyone else know of other lenders besides BOA and Suntrust?

 

[mshheaddoc]

Tower Mortgage, Region's Bank. They aren't advertised and usually actually go through your school sometimes. You need to usually ask for the private banking group or wealth management group as they work with the high net worth individuals (including residents).

I will tell you that doctor's loan rates SUCK right now though, esp with the 100% loans. Some can't even do 100% anymore. I know Tower can though.

 

[Heeed!]

Tower Mortgage, Region's Bank. They aren't advertised and usually actually go through your school sometimes. You need to usually ask for the private banking group or wealth management group as they work with the high net worth individuals (including residents).

I will tell you that doctor's loan rates SUCK right now though, esp with the 100% loans. Some can't even do 100% anymore. I know Tower can though.

I had the absolute worst experience ever with Tower Mortgage. I would not recommend them to anyone. n=1

 

[Sol Rosenberg]

Home loans are a commodity. The cheapest is the best. check out bankrate.com

This post sums it all up. Get the loan with the lowest costs (interest rate + fixed costs.) The only cavet is that some lower-cost lenders may be a little "sloppy" in their paperwork pre-closing, and you need to look over everything really carefully to make sure that they don't slip in extra charges, etc. Also, they may need [constant] prodding to get things done faster than the 11th hour so that you have time to look over the closing statement before closing.

However, all of these practices (carefully looking over closing statements before closing, etc) are good practices to get into anyways, so the best loan is the loan that costs the least (your loan through an oddball lender will most likely get sold to a mainstream lender anyway.)

 

[doctorloans]

Hey guys, I'm not exactly sure what I can/cannot do on this forum, but I have posted in the corporate affiliations thread earlier (mshheaddoc, please delete this post if it is out of line with forum regulations).

I totally agree that you should get the best loan for your money, period. The lowest rate, lowest closing costs, etc. Definitely shop around, and I think going with a large, established lender is your best bet.

If anyone wants more info from me, please let me know. I don't want to come out and say some stuff (although I am dying to help) because I don't want to violate the forum rules.

Best of luck!

 

[mshheaddoc]

I had the absolute worst experience ever with Tower Mortgage. I would not recommend them to anyone. n=1

👍 I wouldn't doubt it. I was just throwing the name out there. It seems many of these doctor loans have hidden issues, including BOA, Tower, etc Our loan didn't go without issues, but I was lucky b/c I knew how to navigate the business. Plus sometimes working with a private banker gives you leverage which many health professional students can get.

 

[WatchaMaCallit]

I don't know you Doogie and haven't researched your post history, but the fact that you resurrected a year old thread along with an advertisement for a loan salesman is a little suspicious at best. Never mind, I just researched your post history (1 post.) The moderators have asked that you give a little information about yourself prior to advertising here, Jeff. By the way, according to your website you don't give loans to optometrists, so how is it that "doogie124" the optometrist qualified for a loan with you? Unless of course you meant to say optometrist on your website instead of ophthalmologist. Either way, nobody likes someone pretending to be someone they're not. How can people trust your advice on mortgages if they can't even trust you to say who you really are? Here's the thread where you should have put your first post:

http://forums.studentdoctor.net/showthread.php?t=453685

way to nail him boss 😉 good job, smart detective work!

 

[jane70]

Here are a few sites I found of places that offer the "doctor loan". Since I'm just starting the process I can't speak for any of them, but if anyone else has experience with them I'd love to hear it.


http://www.physicianloans.com/

http://www.mortgageloansfordoctors.com/

http://www.physicianlender.com/

 

[footdoc8]

If you're presented with a loan that includes mortgage insurance, look into lender-paid MI, or LPMI, or SingleFile loan. It's slightly higher interest rate but without any MI, and you get to deduct all that extra interest from your taxes each year instead of losing your money on paying more insurance. Everyone's situation is different so it might not benefit you. You should definitely check out that option though, and definitely check out mtgprofessor.com

 

[Rosenthal]

I likewise used USAA, after checking lendingtree.com and found the rates to be competitive. USAA gave me the same rate with no PMI with only 10% down. I also had a good experience with Charles Schwab online bank. Bank of America and Compass bank both have physician loans in which you can finance 100% (not 80/20) with no PMI. Just contact a few places and ask for a good faith estimate.

Thanks for this piece of information. I just called Charles Schwab to refinance my loan today and was satisfied with the experience. Had my rate locked after 30 minutes' information exchange over the phone. Another mortgage broker contacted me right after that and was curious what rate I got, and he could not believe the rate was without point. So I suppose it must be a competitive rate. My rate was locked at 5.17% and this was a 7/1 arm adjustable loan with interest only option.

 

[box29]

I had the absolute worst experience ever with Tower Mortgage. I would not recommend them to anyone. n=1

So what happened with Tower? I was thinking of going with them.

 

[Heeed!]

So what happened with Tower? I was thinking of going with them.

Too frustrating to recount all the horrific details. We sent the agent everything we were asked for months in advance but she kept saying the underwriter wanted more paperwork...and that continued up until the day prior to closing. Getting all the additional paperwork/documentation was irritating but would have been easy enough but my household goods were packed, so it was...how should I say it?...extremely difficult and unpleasant. They didn't lift a finger to do anything for our loan until the end....We closed on a Friday morning and while we sat in the closing office ALL DAY LONG, they eventually got around to faxing the 80/20 paperwork over...but started with the last page of the 20 and ended with the first page of the 80...and I don't mean they put it in the fax machine wrong: they were completing the paperwork while I'm sitting there in the closing office...30 minutes between faxed pages!...then they didn't send the electronic funds by 5:00 p.m. so the closing company wouldn't give us the keys...but all my household goods were arriving early Saturday morning along with 30 people to help me unload.

I could go on.



Why even risk it? There are so many other companies out there. But this is just my opinion, so whatever.

 

[Mortgage]

A loan is a decision that implies many elements to consider. The Internet can provide all the information you need to know on the subject but it is up to you to decide what is best for you. Do not be fooled by all the false promises of loan companies. Make sure that you have all the knowledge required and go for a reputable company. Find out what are the key factors that can have a positive effect on your loan application and see the requirements of various loans (personal, secured, bad credit and car loans). Keep a good credit history, do your own research and let experts highlight some of the advantages for you. This is the best way to go.

 

[elderjack21]

U S A A; great comprehensive service; they recently offered a 30 year fixed rate mortgage, 5.75%, with 0 points and $1,430 premium pricing (a credit applied at closing). Rates change often. You can check their website to see what the rates are at any given time, plus you can sign up for mortgage watch and they'll e-mail you the rates daily. Good Luck!

If I understand them...USAA doesn't actually offer mortgages, instead they have a group of providers that meet the USAA level of excellence so to speak. Is this correct?

My realtor is saying that it is nice to get a local lender for the sake of being more user friendly and if there are any last minute changes, it is easy to things taken care of on closing day...however I am all about getting the best rate possible.

On another note...I just got a quote from a lender (hypothetical numbers that were given as an estimate on a 110000k loan, 20% down payment) but I was shocked to see all of the things that are thrown into closing costs! Is this for real:

Origination fee: 1%
Appraisal Fee: 300$
Credit Report: 14$
"Commitment fee": 599$
Attorneys Fee: 450$
Title insurance: 196$
Recording fee - Deed: 95$
Pest inspection fee: 55$
Home inspection fee: 400$
Fire and hazard insurance premium (1 year): 570$
Hazard insurance escrow: (3 months) - 142$
City property taxes: (11 months) - 1200$

For a grand total of about 5k....I feel dirty.

 

[Sol Rosenberg]

I wouldn't pay points (AKA "origination fee") unless the loan has a really good rate, you are putting down at least 20% (looks like you are,) and you KNOW you will be living in the home for a while. The origination fee is included in the APR of your loan.

The committment fee is also a junk fee, and it is also included in the APR of your loan. Most of the other things you listed are customary closing costs, but not paid to the lender. You can shop around and might be able to do better (for homeowner's insurance, home inspection, etc,) but those numbers don't look out of line from what I am used to paying.

RE: Local vs. Non-Local. I've used both. Go with whomever gives you the best rate/fees combo. Real estate agents often get a kickback from local brokers, so they will push someone specific.

EDIT: Forgot to mention: Junk fees are usually negotiable. You can probably get the broker to get rid of the "committment fee," for example, by getting another bid from another broker. Show someone else your GFE and they will usually beat it. Show that GFE to the original guy, and he will usually beat it. Repeat until all junk fees are gone.

 

[plauto]

If I understand them...USAA doesn't actually offer mortgages, instead they have a group of providers that meet the USAA level of excellence so to speak. Is this correct?

My realtor is saying that it is nice to get a local lender for the sake of being more user friendly and if there are any last minute changes, it is easy to things taken care of on closing day...however I am all about getting the best rate possible.

On another note...I just got a quote from a lender (hypothetical numbers that were given as an estimate on a 110000k loan, 20% down payment) but I was shocked to see all of the things that are thrown into closing costs! Is this for real:

Origination fee: 1%
Appraisal Fee: 300$
Credit Report: 14$
"Commitment fee": 599$
Attorneys Fee: 450$
Title insurance: 196$
Recording fee - Deed: 95$
Pest inspection fee: 55$
Home inspection fee: 400$
Fire and hazard insurance premium (1 year): 570$
Hazard insurance escrow: (3 months) - 142$
City property taxes: (11 months) - 1200$

For a grand total of about 5k....I feel dirty.

those fees seem reasonable. Title insurance at $196 is nothing...here in NJ it's at least 1K. Origination fee is bogus. The last 3 are not really fees, just costs of home ownership. Attorneys fees...find out what exactly it's for. Usually it's a law firm sending an intern down to the county office to check deeds against your house. Those are public records and you can go down the county office yourself and check the house records in 10 minutes for free (that's what I did for my house and saved a couple hundred dollars).

 

[elderjack21]

RE: Local vs. Non-Local. I've used both. Go with whomever gives you the best rate/fees combo. Real estate agents often get a kickback from local brokers, so they will push someone specific.

EDIT: Forgot to mention: Junk fees are usually negotiable. You can probably get the broker to get rid of the "committment fee," for example, by getting another bid from another broker. Show someone else your GFE and they will usually beat it. Show that GFE to the original guy, and he will usually beat it. Repeat until all junk fees are gone.

Thanks for the good information. I will shop around and see what I can get.

 

[elderjack21]

those fees seem reasonable. Title insurance at $196 is nothing...here in NJ it's at least 1K. Origination fee is bogus. The last 3 are not really fees, just costs of home ownership. Attorneys fees...find out what exactly it's for. Usually it's a law firm sending an intern down to the county office to check deeds against your house. Those are public records and you can go down the county office yourself and check the house records in 10 minutes for free (that's what I did for my house and saved a couple hundred dollars).

I will ask about the attorney's fees...

 

[CorpusERdoc]

I will ask about the attorney's fees...

attorney's fees are zero unless you hire one

 

[elderjack21]

attorney's fees are zero unless you hire one

But since this is my first home purchase...I would assume that would be the wise thing to do at this point.

 

[CorpusERdoc]

But since this is my first home purchase...I would assume that would be the wise thing to do at this point.

If you have a good Realtor, I don't see any reason to. Most of the language on these forms are standardized.

I'm buying a new home myself, and don't plan on using an attorney.

 

[THP]

If you have a good Realtor, I don't see any reason to. Most of the language on these forms are standardized.

I'm buying a new home myself, and don't plan on using an attorney.

Some states do not use escrow companies but rather require that attornies handle the monetary transaction. I was confused by this at first because I bought my first home in CA (use escrow companies) and my second in NC (no escrow companies - only attornies).

 

[CorpusERdoc]

Some states do not use escrow companies but rather require that attornies handle the monetary transaction. I was confused by this at first because I bought my first home in CA (use escrow companies) and my second in NC (no escrow companies - only attornies).

Texas uses escrow.

 

[DoctorWannaBe]

But since this is my first home purchase...I would assume that would be the wise thing to do at this point.

In some states it is pretty normal to use attorneys, and in others it is unheard of and you just use your realtor. Find out what the norm is in your state, and if you have a good realtor he/she should be able to walk you through all the paperwork. I didn't use an attorney for my first home and was just fine.

 

[Sol Rosenberg]

attorney's fees are zero unless you hire one

This is not correct. Even in TX, for example (i.e. states where closing occurs at a title/escrow company,) there is usually a small attorney's fee paid at closing (by the buyer,) to pay for the attorney that the lender uses to draw up the loan paperwork.

However, at second look, the $450 the OP quoted seems high for that service, if he/she is from a state that uses title/escrow companies (In the past, I have paid a $100-$200 attorney's fee at closing.)

 

[CorpusERdoc]

This is not correct. Even in TX, for example (i.e. states where closing occurs at a title/escrow company,) there is usually a small attorney's fee paid at closing (by the buyer,) to pay for the attorney that the lender uses to draw up the loan paperwork.

However, at second look, the $450 the OP quoted seems high for that service, if he/she is from a state that uses title/escrow companies (In the past, I have paid a $100-$200 attorney's fee at closing.)

Actually, with Bank of America's Doctor Loan & Medical Flex Loans, there are no attorney's fees in Texas. See attached for a listing of fees.

You will notice on the line "attorney's fees" the total is zero.

 

[THP]

Actually, with Bank of America's Doctor Loan & Medical Flex Loans, there are no attorney's fees in Texas. See attached for a listing of fees.

You will notice on the line "attorney's fees" the total is zero.

The reason there is no attorney's fee is because there is a $125 escrow settlement fee (which wouldn't exist if you used an attorney).

 

[CorpusERdoc]

The reason there is no attorney's fee is because there is a $125 escrow settlement fee (which wouldn't exist if you used an attorney).

Perhaps, but your statement that there is an attorney fee is inaccurate.

 

[Sol Rosenberg]

Actually, with Bank of America's Doctor Loan & Medical Flex Loans, there are no attorney's fees in Texas. See attached for a listing of fees.

You will notice on the line "attorney's fees" the total is zero.

Why on Earth would the poster in post #30 (elderjack21) use a Doctor's Loan? To save $200 on an attorney's fee? I noticed that the loan you posted had $719 in "other lenders fees." Also, the rate is like 1 point above that of a comparable conventional loan (My credit union offers 30-year fixed conventional loans for 5 7/8% (5.930% APR,) and they are usually about 1/2 point higher than market.)

Your statement was that an attorney fee is only charged if the buyer hires an attorney. That is wrong. Every loan has a unique hodgepodge of fees. In my experience, every conventional loan I have taken out has had an attorney's fee (~$125, IIRC.) That's not to say that all loans are the same. It's pretty pointless to argue over individual fees. At the end of the day, it's the total amount of lender's fees that will differ significantly from lender to lender.

 

[elderjack21]

NC requires an attorney at closing...there is my answer. The bar association must have paid off some politicians to drum up business.

 

[mike1618]

For those of you who are worried about mortgage insurance, the IRS now allows it to be written off along with interest. Check it out to make sure that you would be able to, but don't go for LPMI with a higher rate and lose a write off.

 

[RedBlue04]

so can people explain the ARM vs a fixed rate? why is one better than the other. and how does this differ from the interest only ARM?

thanks! i'm an idiot when it comes to these things!

 

[CorpusERdoc]

so can people explain the ARM vs a fixed rate? why is one better than the other. and how does this differ from the interest only ARM?

thanks! i'm an idiot when it comes to these things!

Get a fixed rate and consider nothing else. The interest rate will go up over time...

 

[DoctorWannaBe]

so can people explain the ARM vs a fixed rate? why is one better than the other. and how does this differ from the interest only ARM?

thanks! i'm an idiot when it comes to these things!

An ARM is fixed for only a few years (I think up to 7 years) and then the rate changes yearly after that. The advantage is that you can usually get a lower rate for those first few years that it is fixed, which is great if you aren't planning to stay in the house that long. However, I talked to a lender last week who said that right now ARMs have a higher interest rate than a fixed 30 year loan. If a 30 year has a lower rate than an ARM, I see no advantage to an ARM over a fixed rate.

Interest only means you only pay the interest on the loan and don't pay any principal (meaning you don't build any equity in your house). The advantage to this is that your payment will be lower since you are only paying interest, so you can afford a more expensive house.