Thansk Denita - will check Guaranteed Rate. Someone mentioned aimloan.com

Anyone has any opinion of them?

I don't know AIM Loan. Do some research to find actual clients that have used them recently to get an accurate picture of their abilities. I just googled for complaints and their record isn't all that good (typically 2 or 3 out of 5 stars) with the various complaint websites.

I've had many clients over the years go through Guaranteed Rate (I'm a Realtor) without issue. They originate, underwrite and fund their own loans, They close on time. Everything is online. Actual loan officers and not application takers. Plus, they are honest. It's worth checking them out.

Follow-up Q: We are likley to close the home sometime in Dec 2017 - when should we start shopping for mortgage and also, when should we lock it(we really won't know the actual closing date until sometime in November)

Are you building are buying a resale?

If you are purchasing a resale you will need to have your pre-approval in hand before you start shopping for your new place. I don't know your market so I don't know how long it will take to find what you are seeking.

If you are building, then the builder typically wants you to get your pre-approval through one of their preferred lenders. Sometimes the sellers concessions depend upon you using one of their lenders. Even if they do have that requirement, shop your lender. You would want to know all the costs (closing costs, pre-paid expenses, interest rate). Most lenders will lock 45 to 60 days before closing if you have a contract. A longer lock costs more in your rate.

This is a new build and we got pre-approved thro' the builder but want to check with other lenders as well.

Start shopping for another lender now. It's not too early. Find a good loan officer. Ask your Realtor and family and friends to recommend a good lender they used. Stay away from the big box banks. Find a lender that originates, underwrites and funds their own loans.

There are locks out there for over a year.... with the uncertainty in the, um, overall "atmosphere" in the US, I am going to lock for 9 months to a year shortly to not have to worry about that. It might cost 1/8th point or something small, and it might raise my rate SLIGHTLY - but the risk reduction is worth it to me.

Online lender is cheap in that they pay employees less than industry standard. The rep will only spend brief time on the easiest cookie cutter closeable deal, anything that goes wrong or is different will put you in the slush pile. Find a mortgage banker who is local, and answers you daily phone or texts until you close. The pennies you may save on a sixteenth lower in interest rate means nothing. Compare PAYMENTS

@Jannicone - please keep me posted on the lender you choose

@Caroline - thanks but payments aren't important for us - we need the lowest rate and payments take care of themselves since we either prefer 1 5-year fixed or 10/1 ARM.

Right now it's looking like Wells Fargo - they seem to be trying extra hard. ;-)

Wells Fargo has a bad reputation for not closing. They issue pre-approvals easily, but a large percentage (last I heard was 40% of all WF apps) fail to close. This is sometimes due to borrower qualifications, but it is more often the lender overlays that kill the mortgage. They have to take the application even if they know the borrower doesn't qualify. Only the underwriter can issue the denial. I would run from Wells Fargo. Try Guaranteed Rate. They have actual loan officers that know what they are doing. Plus their interest rates are lower and their closing costs are less. Compare the cost of the entire loan (rate and costs) with what you have already.

We used home direct mortgage. They gave us a 6 month lock and 1.25% closing cost rebate with a rate better than the our builder lenders 60 day lock. If you wanted more back at closing, you could raise the rates.

@bumoftheday - thanks. Did you do a 30-year fixed mortage or a VA loan?

How much was your closing costs after the rebate?

30 year conventional fixed.

It's really hard to compare closing costs between areas, so take this with a grain of salt. My closing costs excluding prepaid's were about 1.5%. With prepaid's our costs were significantly higher. We'll get a lot of the prepaid money back after taxes are paid due to property tax exemptions that we get that they don't factor in.

My loan officer moved from one bank to Wells, and we're going to test them out on a refi that isn't exactly time sensitive before we move on to consider them to lock the permanent for the new house project. Long story - but my loan person kinda owes me from the original construction loan and all we went through. She's a personal banker / mortgage loan officer with a pretty high standing. We'll see how they do on the refi and I'll report back. Right now, I trust her to not steer me wrong / disappoint me. LOL... but I am definitely "trust but verify"....

Wells Fargo here locally has a bad rap as Denita says. I hope you find your deal smooth.

I will second (or third) the recommendation to go with someone local. First of all, it is a great idea to develop a relationship with such a person.... ours contacted us 9 months after our first refi to let us know rates were (significantly)even lower and it would be beneficial to refi again. Someone local will be interested in keeping their excellent local reputation, such on on Yelp, Nextdoor, and the local real estate agents, and with your neighbors, etc. They have an incentive therefor to be accomodating and honest, and helpful. Ask your friends and neighbors.

TaraP- Why bother with paying into the mortgage system, when you can simply hook up a mortgage calculator for free? I get the idea of being mortgage free. But that can be accomplished without ever paying anybody another dime. You can afford a much larger payment? Then just do it, every month, and get yourself mortgage free!

@Laurie - I don't think you read my Q. We are looking at minimizing closing costs not about paying the mortgage(yet).

Tara P- I did read your Q, but perhaps should have asked one of my own. Is this a new mortgage, re-fi, or something else? My main point is that you can pay a normal, less expensive in closing costs (no real buy-down) 30 year mortgage down, just like a 15, without setting a much larger payment in stone.

15 year mortgages are generally a lower interest rate than a comparable 30 yr loan.