Comment by JumpCrisscross
6 days ago
> At a credit union with the process broken down across fewer people the person making that decision is more likely to be able to see that the big picture math still works for a given product
You and OP agree.
Broadly speaking, if you have good credit (or are wealthy) you’ll get a better rate at a bank or mortgage specialist. If you don’t, you’re more likely to get approved at a credit union.
Credit unions, or small banks are likely to be helpful in some situations. When building our house 8 years ago we had a lot of trouble getting the construction loan mostly because of 1-2 bad comps in our area. One of the big banks turned us down with no recourse with an assessment that included a picture of the wrong lot (a farm field across the street). Another said no one should build a house under 3k square feet, so no to our plan. Our little local bank was able to actually take a look and approve us.
> we had a lot of trouble getting the construction loan mostly because of 1-2 bad comps in our area
Yup. The broadest categorization is are you first minimizing cost or chasing approval. If the latter, you’re better off with someone intensely local. If the former, you want economies of scale. (Of course, one should still shop around even if focusing on approval first.)
> If you don’t, you’re more likely to get approved at a credit union.
Or you're buying well below your means but don't wanna get screwed into a different product because what you're buying is on the ragged edge of what can be bought with the lower cost mortgage product you want.
Some jerk at corporate for the big bank will punt because some rule he's supposed to follow says he ought to do that and it's not like he stands to benefit by not. The CU will probably squint and work with you.
> Or you're buying well below your means but don't wanna get screwed into a different product
This customer is looking for a lender who can and will eat costs for the relationship. That’s probably a mortgage specialist with a wealth management arm. The ones who require 25 to 35% down, but undercut the rates e.g. a credit union can charge.
> because what you're buying is on the ragged edge of what can be bought with the lower cost mortgage product you want
If you’re buying within your means, you shouldn’t be on the ragged edge of anything. You should be getting a cheap, plain mortgage from a lender competing for your business. Ideally conforming, and where the originator eats origination and closing costs.
>This customer is looking for a lender who can and will eat costs for the relationship. That’s probably a mortgage specialist with a wealth management arm. The ones who require 25 to 35% down, but undercut the rates e.g. a credit union can charge.
>If you’re buying within your means, you shouldn’t be on the ragged edge of anything. You should be getting a cheap, plain mortgage from a lender competing for your business. Ideally conforming, and where the originator eats origination and closing costs.
I can't put my finger quite on why, but your comment has a really not nice tone to it.
This customer is an otherwise normal-ish buyer who wants a fix and flip (like real fix, more than just cosmetic or "updating" or something like that) and they outnumber people who have any relevance to a "mortgage specialist with a wealth management arm" 100 if not 1000 to 1.
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