Local Vs Internet Mortgage Lenders

I did end up going with my local lender but I used both Quicken and Better for comparisons. They give you faster pre-approval but are also much more transparent with their rates and points system.

I did end up leveraging that to bargain my rate down with the local lender by emphasizing the fact these online guys can under-write and close on time.

Some lenders will drag out the underwriting process to commit you to them.

We are buying a new construction house, and we are kind of forced to go with the builder's mortgage company because of 10k credit. Another interesting fact is that buyer pays all the closing costs in MD for new construction homes. The total closing cost is like 24k, and that is outrageous. Any thought on that Javier?

Hey Javier, at around minute 14 you mentioned something about points. I do not know what that is, could you explain?

Wow, never thought I could negotiate my rate down....

i would like to know how to calculate a house. like how much a house worth. and how they do the calculation.

Get the online preapproval and have a local lender match

Hello Gigachad Javier. I want to thank you for your videos because they have helped my wife & I become very knowledgeable first time home buyers and today we closed on our first house!!! Your videos prepared us for all of the curveballs that come with the process. Thanks so much please keep doing what you're doing because you're helping a ton of people!

Thank you very much

I've purchased and refi'd with Better. I would 100% recommend for refi. Javier is right about complications of a lender that isn't local when purchasing.

Can we ask the online lender waive the points money?

Used freedom mortgage to buy my second home last year and overall had a great experience than using a local lender for my first home. My loan officer was on top of everything, emails and calls mostly everyday to make sure I didn’t have any questions or problems

You lost me when you opened the spreadsheet.
Edit: so the lesson of this video the online is cheaper, but Javier is biased towards local.

Refied with better twice. Betters offer was notably better than a banks. The refused to compete.

Better will email you rate offers almost daily if do their partial approval process. I waited a month and locked in a rate when I saw a point amount and rate I like .

They call you very little and were super easy to work with. Both times it only took about 3 weeks to close. Phone and email was plenty sufficient to resolve issues.

Also really love how upfront and easy it is to get real quotes from Better. The local mortgage brokers were anoyingly cagy about giving a formal offer/quote. They threw out numbers but werent giving full cost...

We also went with our local lender for the exact same reasons. We looked at a big bank (BofA), online lender (Rocket), and local. In our case actually BofA gave us the lowest (APR and closing cost). And local was initially slightly higher but they matched when we showed BofA's quote. Also, BofA guy was from Seattle although he was really sweet and tried to work with us as much as he can - always followed up, very professional and kept his appointments. But still local was more convenient and they matched. Rocket tbh was pretty shitty to us. They would not follow up or reply to emails. Several times missed appointments and would later call anytime they feel like. The quote was much higher (both APR by around .4% and closing cost by 2k) and then when we asked if we can lower the rate anymore since we have a good credit score (my 770+ and hubby's ~800) and would make 20% downpayment, the lender guy had the audacity to let us know that this is the best we would get since we have an okay score not good and the loan amount was high (375K). I could not resist giving him a piece of my mind and also the other quotes we had and let them know we are done with Rocket. Suddenly after that they just could not stop calling and emailing us. But we ignored those completely.

If you guys have plans of purchasing a home from the builder Richmond American Homes, DO NOT use their lender Home American Mortgage.there is 'free' closing fee incentive from that lender but they are horrible. They do not communicate properly to their clients. Our loan officer quit on our closing day and nobody from our lender told us about it.we found out that they put our application on hold and demanded different requirements past our closing date that we can no longer comply. We ended up cancelling the contract and lost $3,000 to no fault of our own.

I’m a local lender now and have been an internet lender when I first got in the industry. Trust me when I tell you, internet lenders (for the most part) bait and switch A LOT.

Is there an online lender that you recommend? I got a 3.1% from a local lender but I’m wondering if it could be better with an online lender.

That Arnold Schwarzenegger scene took me out... 😂

I just close my house with quicken loan 20 years conventional 2.375% interest rate, they are easy to work with

Great video, man. That was really insightful.

Can you do a vid on using a builders preferred lender (with incentives) vs a local/online with generic or no incentives.

Best!👍👍👍

I went local also and had a great experience at the time my score was WAY low 600s so getting 3% I didn’t think I was going to do better now I just have to get rid of this PMI

Dude I love your videos they have helped me understand the housing game so much keep up the awesomeness

Got pre approved by rocket mortgage with a decent credit score. They assigned me a guy to help me fix my credit, I had 3 medical collections in my credit report. He suggest I reach out and negotiate a pay for delete. Luckily only one company had all 3 debts, I negotiated and they agreed to a pay for delete. After 3 weeks of paying my credit went up to 760 from an original 690. Rocket then gave me a 2.75 rate back in October 2020. I purchased a short sale property so couldn't lock that rate. I shopped around for a local lender in North Jersey, no one could match or beat the rates and fees. I wasn't looking for someone to baby me through the process. So I stuck with Rocket Mortgage and closed in March 2021 at 3.125% rate. At closing my lawyer and closing agent loved the fact that I was using Rocket, they mentioned that there are easy to work with. As far as my realtor, he found it easy and pretty intuitive to communicate with Rocket.

I tried two local lenders and then an online lender through fairway mortgage. Online lender beat local rates and overall was great. We got a 2.85 interest rate on 20 year conventional. Communication was great and was always available via phone or email even after regular business hours. Closed on our first house this June. Just our experience.

Bro you real estate agents need to stop make borrowers scared of online Lenders because y’all have connections. We do work on the weekends we are available to our borrowers. No you aren’t your own processor, we have our own processor we do exactly the same thing as your local lender at a better price. Real estate agents just want to keep everything with their circle to benefit from Local business

I’m in the process of finalizing a home purchase. Out of 52 offers, I was the winning bid and it’s all because my lender and realtor. Agreement took place over memorial weekend, on a Sunday evening, and sellers said my lender and realtor were the only ones to respond to question and inquiries within the same day; everyone else replied days after but by that point it was already to late for them. That availability can make a big difference! Just FYI, I was not the highest bid, so, I lucked out.

Do they have online websites to shop realtors around? I mean, you should do a video on the differences “pros and cons” of using let’s say Open** vs a local realtor.

☝🏼 that wrong Javier, my guy from my online lender picks up his phone on weekends and even after 9pm!! and he was knowledgeable and very helpful and wanted to help! 🌈

I am Sooo Very Happy to have found your page ! I truly wish you lived in Denver Co. I am feeling so reassured by all that you are sharing about Everything. I am struggling to find a replacement home is what I’m calling it. I need a different Condo community to live in, but they are so difficult to find and when I do find one it’s taken immediately the next day. I’m one person being dissatisfied by my HOA keeping the community on a downward decline. I would like to know how many people are doing this on their own with no one else but the realtor & lender helping them. That is why I like your page so much !
Thanks for all you do. You definitely know your stuff & love what you do.

I probably should have done your strategy. I got two preapproval quotes from local and better at the same time. The local lender's interest rate was actually lower than the online lender's. I didn't shop around after that. What I should have done was at least check the online lender's rate at time we signed the contract.

Talk about mortgage brokers. Should we use or do our own shopping. What do they charge?

I used a local lender for my initial home loan and they kinda drove me nuts. My loan processor wouldn’t answer my emails and I’d get automated messages days after the processor had asked me for the documents. And whether you go with online or local, you still have to chase down any paperwork they ask for. For my refinance I used Better and it was awesome. They beat four other lenders and ended up paying me $250 to do it. The processor was in New York but he sent me stuff at all hours and was on top of every automated message I got too. I would go with them again and not recommend my local lender at all. But each location and lender is different, for sure.

Thank you!

what abt rules/regulations on leasing an office space, that i mortgage, to a cannabis retailer? like can you lease out an office/retail space that is part of a building that is currently under mortgage?

I really feel like this is bias, underwriting fee is blank, no origination points (for online lender). I have had at least 10 clients get "online quotes" and there hasn't been a single one without those 2 fees associated, maybe they weren't far along enough in the process in this example, or possible bias in creator of this video.

Good analysis. I like that you took out the 3rd party fees. You should going to be the same no matter which lender you use.

Remember though, if there could be any kid of problem with your loan.. you want a real broker.

This person must work for an Internet lender there's no free money money is a commodity it costs the same no matter where you go it's just the margin of how much the lender marks it up

Great Content Javier!

Like to know i can bang on the door 😂

What’s the best mobile home online lender? Please asking for help

A lot of people do not understand mortgages and how they really work , guess that’s why so many fraudulent people are pushing velocity banking and other scams !
But if you have a fha , conventional, Va or any other confirming mortgage as most are , then it does not matter who you get the mortgage from , even your local bank is probably not going to keep that loan , they will sell that loan grouped with a lot of other mortgages, that’s just how it works !
So thinking you are getting someone local means you dint know the facts !

Wells fargo gave me a preapproval in 5 minutes. Local took longer but gave me a higher approval price and i can text them on a weekend if needed.

If a buyer needs DPA and to take advantage of their local 1st time home buyers programs weren’t the online lender have to be familiar with these programs or it’s pointless to just get a regular quote right?

Great video, exactly my situation. Curious where you are located? Thanks!