Hi All, I am looking to close on a co-op and my head is spinning. I have read and researched and asked a zillion questions to the lenders. However, I am still a bit lost as none them appear to be upfront with the needed details. No GFE or APR quotes without an app. but how to choose who to apply with? The lenders I am considering are Citibank, and Sovereign. If anyone has closed with either I... [more]
Hi All,
I am looking to close on a co-op and my head is spinning. I have read and researched and asked a zillion questions to the lenders. However, I am still a bit lost as none them appear to be upfront with the needed details. No GFE or APR quotes without an app. but how to choose who to apply with?
The lenders I am considering are Citibank, and Sovereign. If anyone has closed with either I would love to hear how it went. Did they keep close to their quotes for closing costs/rates?
I really could use some help understanding how this works. Here the rates listed on their websites for a 30 yr fixed loan:
Sovereign: rate is 3.625 and APR is 3.784 (no points) based on 30% down
Citi: rate is 3.625 and APR is 3.773 (.625 points) based on 25% down
If anyone can help me break this down it would be really great. It appears to me that citi would be the best rate because of the lower APR except I don't understand the points. Just how many points = .625 ? Also, if I am paying for several points shouldn't the APR be higher?
P.S. Citi's closing cost appear to be about $560. lower than Sovereign's
THANKS SO MUCH!!!
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Response by stevenlee21
over 12 years ago
Posts: 88
Member since: Mar 2013
when u were asking quotes from them, why didn't u do apple-to-apple comparison? say, both 25% down, and 0 point?
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Response by Guywithcat
over 12 years ago
Posts: 329
Member since: Apr 2011
Check with Wells Fargo, they are more aggressive. Anyway, Citibank told me they are taking 90 days to close -- after your paperwork is in. So you could find yourself waiting and waiting. It's a frustratingly long time to close. THis means a typical deal would be pushed back at least 30 to 60 days or more. Both banks will scrutinize you a lot but you will probably also be more scrutinized at Citi. I did three deals with city and this year I just dumped them. Seriously look at WElls and B of A as both are really trying to do deals and move much faster and offer a wider range of products with a better attitude. My two cents
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Response by monas
over 12 years ago
Posts: 18
Member since: May 2012
Oh 90 days very scary. Thanks for the advice guywithcat!
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Response by monas
over 12 years ago
Posts: 18
Member since: May 2012
Hi Steven,
Thanks for your reply. I actually did ask for all quotes based on 20% down and no points. However, no quotes that I was given seemed to make any sense compared to what was posted on the web. My credit score is only 740 but yet I was getting lower quotes than posted. Does this make any sense?
When I confronted all the lenders none of them seemed to have a legitimate response. In addition, a few said they could not give an APR without a GFE. This is why I am using the web info to compare.
BTW, does shopping for a mortgage really mean spending thousands GFE apps?
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Response by rlr689
over 12 years ago
Posts: 158
Member since: Apr 2012
Guywithcat,
Very good point. Shudder, my mortgage app process took close to 105 days to close last year. Was scrutinized on everything and anything. Terrible process. Even went beyond my (and my attorney's) stipulated "drop dead" date.
So, go with the more aggressive lenders, WF and BOA. WF ended up buying my mortgage anyway. Wish I had gone directly to them.
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Response by monas
over 12 years ago
Posts: 18
Member since: May 2012
BTW, guy I did check with wells. there app fee is $900 and there closing cost are triple the competitors. Did you dump citi b/c of the closing time? How were they as far as keeping close to their initial quotes?
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Response by rlr689
over 12 years ago
Posts: 158
Member since: Apr 2012
Also, monas, I did not have the problem you did. I got a working list of all anticipated closing costs upfront with a few lenders/ brokers I checked out. All of the closing costs were comparable and turned out to be close to the actual costs at closing. GL to you. The lenders have made it a terrible stressful process. Even those of us with excellent credit and no problems with previous RE transactions and fidelity to our loans are being "punished" big time. Oh, to be an all cash buyer!
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Response by stevenlee21
over 12 years ago
Posts: 88
Member since: Mar 2013
Well's rate i got was higher than citi and tdbank.
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Response by crescent22
over 12 years ago
Posts: 953
Member since: Apr 2008
It's hard to believe Wells or any bank has closing costs 3x the others. You must not be comparing apples-to-apples. Wells may be adding in the condo mortgage tax or mansion tax into your closing costs quote while the others are not.
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Response by mucuk
over 12 years ago
Posts: 79
Member since: Mar 2009
B of A is a waste of time, don't say I didn't warn you, famously bad service to the point that newspaper articles have been written about trying to fix it.
TD bank's website has better rates than the ones you quoted. Is this conforming (<625) or jumbo?
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Response by mucuk
over 12 years ago
Posts: 79
Member since: Mar 2009
True that you generally can't get a GFE without giving an application.
False that you have to pay a lot for this. They can only charge you a credit report fee until you indicate a desire to proceed after receiving the GFE. See RESPA: http://www.bankersonline.com/regs/3500/3500-7.html
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Response by stevenlee21
over 12 years ago
Posts: 88
Member since: Mar 2013
tdbank website really has a great rate if they honor the quote.
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when u were asking quotes from them, why didn't u do apple-to-apple comparison? say, both 25% down, and 0 point?
Check with Wells Fargo, they are more aggressive. Anyway, Citibank told me they are taking 90 days to close -- after your paperwork is in. So you could find yourself waiting and waiting. It's a frustratingly long time to close. THis means a typical deal would be pushed back at least 30 to 60 days or more. Both banks will scrutinize you a lot but you will probably also be more scrutinized at Citi. I did three deals with city and this year I just dumped them. Seriously look at WElls and B of A as both are really trying to do deals and move much faster and offer a wider range of products with a better attitude. My two cents
Oh 90 days very scary. Thanks for the advice guywithcat!
Hi Steven,
Thanks for your reply. I actually did ask for all quotes based on 20% down and no points. However, no quotes that I was given seemed to make any sense compared to what was posted on the web. My credit score is only 740 but yet I was getting lower quotes than posted. Does this make any sense?
When I confronted all the lenders none of them seemed to have a legitimate response. In addition, a few said they could not give an APR without a GFE. This is why I am using the web info to compare.
BTW, does shopping for a mortgage really mean spending thousands GFE apps?
Guywithcat,
Very good point. Shudder, my mortgage app process took close to 105 days to close last year. Was scrutinized on everything and anything. Terrible process. Even went beyond my (and my attorney's) stipulated "drop dead" date.
So, go with the more aggressive lenders, WF and BOA. WF ended up buying my mortgage anyway. Wish I had gone directly to them.
BTW, guy I did check with wells. there app fee is $900 and there closing cost are triple the competitors. Did you dump citi b/c of the closing time? How were they as far as keeping close to their initial quotes?
Also, monas, I did not have the problem you did. I got a working list of all anticipated closing costs upfront with a few lenders/ brokers I checked out. All of the closing costs were comparable and turned out to be close to the actual costs at closing. GL to you. The lenders have made it a terrible stressful process. Even those of us with excellent credit and no problems with previous RE transactions and fidelity to our loans are being "punished" big time. Oh, to be an all cash buyer!
Well's rate i got was higher than citi and tdbank.
It's hard to believe Wells or any bank has closing costs 3x the others. You must not be comparing apples-to-apples. Wells may be adding in the condo mortgage tax or mansion tax into your closing costs quote while the others are not.
B of A is a waste of time, don't say I didn't warn you, famously bad service to the point that newspaper articles have been written about trying to fix it.
TD bank's website has better rates than the ones you quoted. Is this conforming (<625) or jumbo?
True that you generally can't get a GFE without giving an application.
False that you have to pay a lot for this. They can only charge you a credit report fee until you indicate a desire to proceed after receiving the GFE. See RESPA: http://www.bankersonline.com/regs/3500/3500-7.html
tdbank website really has a great rate if they honor the quote.