I have not had any experience with them. I have a very negative experience in the last few days trying to obtain a mortgage from PNC Bank.
We are looking to buy a new home and sell our home. Due to the hot housing market, we are making an offer without a house sell contingency. Between cash saved and a HELOC on our current house (which we will be selling) we are going to put down 20%.
PNC Bank had approved me for a mortgage in amount that was greater than I needed for my offer. I was calling to get an approval for the exact amount I needed.
The loan officer, a new one as the earlier one had gone on maternity leave, asked me if I had enough reserves for the loan. My original loan officer never mentioned a reserve, and I said that I dont know what you are talking about. She said since I was getting a jumbo loan rather than conforming. I was expected to have a reserve of $250K of assets, which had to be at least 50% in cash. Most people dont have $125K of extra cash laying around, especially after making a 20% deposit. Long story short, the bank was considering any loan over $510K a jumbo loan, even though conforming loans in my area are up to $765K. They told me that they need a $250K reserve on all jumbo loans, regardless of size. I am glad the second loan officer mentioned this. I tried calling PNC and speaking to another loan officer, but they did not want to discuss it with me as I already had a loan officer. I have tried to contact the officer's supervisor, but haven't heard back.
How is someone getting a mortgage over $510K expected to have a $250K reserve. Maybe it should be based upon a %age of the loan or number of loan payments. I could understand on a loan of 3 or 4 million, but on my loan of around $750K that is 1/3 of the mortgage.
Now, I am going with a loan broker at this time that my agent recommended. They can lend up to conforming limit of $765K without any reserve. In the end, it about the same rate as PNC, but with a bit less fees.
If we sell our house and buy a new home at the same time, this is all moot, but I can't rely upon that especially as I dont have a house sell contigency.
Joe
