So far so good with Mortgage Company

[startingover06]

I was discharged in 2/2006 and am buying a house with 633 credit score, steady employment. I am getting a 7.5% 30 year fixed interest only loan for $239,000. I've been searching this board to find good mortgage lenders but no one seems to mention any names so I went to lending tree and Nation Point came back with a really good loan. I went to countrywide first which was a nightmare 9.75% ADJUSTABLE!!! I'm in the early stages so I'll let you know if they stick with the rate or try to change it on me.

Does anyone know the reason no one mentions the names of the lenders they are working with? It would have been so much easier to have known which lenders people had good experiences with in the posts.

I'm crossing my fingers and I'll let you know what happens.

UPDATE: 10/16/06
Well it was a lie on the rate. It ends up it is 7.5% 3 year Adustable on the first and 10.45% adjustable on the second. Outside of that huge fact, the company has been easy to get approved so far. I'll let you know what happens at closing.

[MTG_BANKER_OH]

I was discharged in 2/2006 and am buying a house with 633 credit score, steady employment. I am getting a 7.5% 30 year fixed interest only loan for $239,000. I've been searching this board to find good mortgage lenders but no one seems to mention any names so I went to lending tree and Nation Point came back with a really good loan. I went to countrywide first which was a nightmare 9.75% ADJUSTABLE!!! I'm in the early stages so I'll let you know if they stick with the rate or try to change it on me.

Does anyone know the reason no one mentions the names of the lenders they are working with? It would have been so much easier to have known which lenders people had good experiences with in the posts.

I'm crossing my fingers and I'll let you know what happens.

That is a good rate, you will need to check and see how much they are charging you, did you get a good faith estimate? They are the retail branch of First Franklin which many brokers use.

[misslovanu]

My bankruptcy discharged 9-5-06, and I'm going with First Franklin, which is a division of National City Bank. From what I understand, Merrill Lynch has acquired them. I will have an ARM which is about the rate that startingover06 has described. If anyone is in Southwestern Ohio (Cincinnati), I have a mortgage broker, who gets most of his loans serviced through First Franklin for people have been recently discharged. I might add that he is professional and prompt. I was pre-approved on Monday, and should close next Wednesday at the latest, if all works out well.

[FloridaMortgage]

I was discharged in 2/2006 and am buying a house with 633 credit score, steady employment. I am getting a 7.5% 30 year fixed interest only loan for $239,000. I've been searching this board to find good mortgage lenders but no one seems to mention any names so I went to lending tree and Nation Point came back with a really good loan. I went to countrywide first which was a nightmare 9.75% ADJUSTABLE!!! I'm in the early stages so I'll let you know if they stick with the rate or try to change it on me.

Does anyone know the reason no one mentions the names of the lenders they are working with? It would have been so much easier to have known which lenders people had good experiences with in the posts.

I'm crossing my fingers and I'll let you know what happens.

UPDATE: 10/16/06
Well it was a lie on the rate. It ends up it is 7.5% 3 year Adustable on the first and 10.45% adjustable on the second. Outside of that huge fact, the company has been easy to get approved so far. I'll let you know what happens at closing.

Not too bad of a rate. Good luck. The fact that they lied is certainly disheartening. Hopefully they were able to regain your trust and make this happen for you.

Good luck.

[HHM]

Why not just wait a year from your discharge, or try to get your FICO above 680 so you get outside of the sub-prime category.

It may be a good rate for a subprime loan, but objectively speaking, its a pretty lousy deal.

[MTG_BANKER_OH]

Why not just wait a year from your discharge, or try to get your FICO above 680 so you get outside of the sub-prime category.

It may be a good rate for a subprime loan, but objectively speaking, its a pretty lousy deal.

The problem is you will still be in a subprime category even if you are over 1 year out, you need to be over 2 years to get out of the subprime category. Higher scores does equal lower rate, but once you reach a certain point it does not get much better.

[HHM]

The problem is you will still be in a subprime category even if you are over 1 year out, you need to be over 2 years to get out of the subprime category. Higher scores does equal lower rate, but once you reach a certain point it does not get much better.

True, it just bugs me to see people rush right out to make major purchases on credit (i.e. house or car) just months out of BK. It makes little financial sense to do so since you end up with these lousy deals. Even if this person is able to Refi in 3 years to get out from this loan, it ends up costing so much more money than simply waiting two years to get a more conventional loan at a better rate. Moreover, given the current state of the real estate market, your not likely to build any equity in such a short amount of time, there really is no benefit. About the only benefit would be the mortgage interest tax write off, but in most circumstances, that will not make up the difference you lose in paying closing and huge interest, plus the costs to refi down the road.