question about buying a house.

[fullracehonda]

i am looking to buy a house soon, in oregon.

my brothers freind is the loan manager/loan approver/whatever you want to call it he approves the loans, so can i get a loan from an AZ bank to buy a house in OR?


thank you prime.

 

[DocL]

It makes no difference where you get the money.

 

[fullracehonda]

now thats a timely response!

thank you DocL

 

[NSXGMS]

As long as the mortgage broker (if applicable) and lender are licensed in the state of funding it's not a problem or if the specific state has no licensing requirements.

If your brother's friend is a broker he may not be licensed and the lender, who may be licensed, may not allow him to broker the loan. If he works for a large bank he may be able to do it but may refer you to a local branch.

Most large banks are licensed in just about every state but may want you to use a branch in-state.

 

[SilverStone05]

now thats a timely response!

thank you DocL

And I would caution you to shop lenders yourself, and NOT use a broker.

It is in the Broker's best interest to screw you the worst he/she can. They make money off the yield spread....the difference in interest between the lender's wholesale rate, and the interest rate you were quoted. The wider the spread, the more money the broker makes. Can you believe that conflict of interest?

Unless you are lazy, have poor credit, or are not savvy enough to shop loans, there is no reason for you to use a mortgage broker.

 

[HTN]

i am looking to buy a house soon, in oregon.

my brothers freind is the loan manager/loan approver/whatever you want to call it he approves the loans, so can i get a loan from an AZ bank to buy a house in OR?


thank you prime.

Please do yourself a favor by shopping around as some of the primers suggested. Simply ask the loan officers for a GFE(Good Faith Est.)
If you are not too fimiliar with comparing GFE's, your Realtor should be able to help you see the differences. And if not, don't use that Realtor. If you need a qualified Realtor, look up the association of realtor in your area.

I am always skeptical of a relative's friend.

 

[hondacuraplanet]

I actually got my home at an interest rate of 3% LOWER by going through a stranger.

At the time, my then soon to be ex had trashed my credit, and I'd gone through a friend who was an "award-winning mortgage broker". I guess the "award winning" part was because of his profit generation.....

 

[fullracehonda]

thanks guys, ill be sure to shop around, including my local credit union where i have a current account.

i have bad credit, my brothers credit is good.

i want to pay for the house in cash, but i figure this would be the best time to start building credit so this will give me a little working room to spend up to 50k over what i wanted to spend, but i dont want to borrow over 100k(1/3-1/4 the houses worth) im not big on commitments:tongue:

 

[NSXGMS]

And I would caution you to shop lenders yourself, and NOT use a broker.

It is in the Broker's best interest to screw you the worst he/she can. They make money off the yield spread....the difference in interest between the lender's wholesale rate, and the interest rate you were quoted. The wider the spread, the more money the broker makes. Can you believe that conflict of interest?

Unless you are lazy, have poor credit, or are not savvy enough to shop loans, there is no reason for you to use a mortgage broker.

Brokers can get you better deals. Whether you find a broker that's honest and gets you that better deal is another story. They also typically provide better customer service that most large banks if that's something that's important to you.

I'm not sure why you lump brokers into some special category where the higher they sell a product for the more money they make...that's true for just about any product and service. That "conflict of interest" exists everywhere.

If you don't do your homework you might get screwed. You'll just get screwed less if you walk into Bank of America but it's highly possible better deals are out there.