Any mortgage expert here?

[spp]

Does it matter which mortgage broker I go to or should I just go to several and compare?
I'm planning to buy a house this year for the first time in my life and I am not quite sure what to expect from them.

Thanks in advance

 

[Thorny]

Originally posted by: spp
Does it matter which mortgage broker I go to or should I just go to several and compare?
I'm planning to buy a house this year for the first time in my life and I am not quite sure what to expect from them.

Thanks in advance

Rule #1 when buying a house, Don't use a Broker. Using a broker could cost you thousands. Just go directly to a bank to apply. Some online lenders are attractive too.

 

[Greenman]

Brokers often get a kickback from the lender. So will he go to the lender that will give you the best rate, or the lender that pays him the most money? I found this out when I went to sign the docs, and went postal. Did a ten minute bulging eyed tirade on the clown, walked out the door and never went back.
Also, when you do get the loan docs, READ THEM, and look at the rate and other charges. I had a lender hand me loan docs with the wrong interest rate (higher) and almost 3K in charges that he couldn't explain.

 

[spp]

Originally posted by: Greenman
Brokers often get a kickback from the lender. So will he go to the lender that will give you the best rate, or the lender that pays him the most money? I found this out when I went to sign the docs, and went postal. Did a ten minute bulging eyed tirade on the clown, walked out the door and never went back.
Also, when you do get the loan docs, READ THEM, and look at the rate and other charges. I had a lender hand me loan docs with the wrong interest rate (higher) and almost 3K in charges that he couldn't explain.

Hm. So why is it that a lot of people suggest to get pre-approved by a mortgage broker before looking for houses?

 

[richardycc]

Originally posted by: spp

Originally posted by: Greenman
Brokers often get a kickback from the lender. So will he go to the lender that will give you the best rate, or the lender that pays him the most money? I found this out when I went to sign the docs, and went postal. Did a ten minute bulging eyed tirade on the clown, walked out the door and never went back.
Also, when you do get the loan docs, READ THEM, and look at the rate and other charges. I had a lender hand me loan docs with the wrong interest rate (higher) and almost 3K in charges that he couldn't explain.

Hm. So why is it that a lot of people suggest to get pre-approved by a mortgage broker before looking for houses?

blind leading the blind?

 

[d33pt]

Originally posted by: spp

Originally posted by: Greenman
Brokers often get a kickback from the lender. So will he go to the lender that will give you the best rate, or the lender that pays him the most money? I found this out when I went to sign the docs, and went postal. Did a ten minute bulging eyed tirade on the clown, walked out the door and never went back.
Also, when you do get the loan docs, READ THEM, and look at the rate and other charges. I had a lender hand me loan docs with the wrong interest rate (higher) and almost 3K in charges that he couldn't explain.

Hm. So why is it that a lot of people suggest to get pre-approved by a mortgage broker before looking for houses?

you can get pre-approved directly by a bank too.

 

[Whoozyerdaddy]

Speaking in general terms here...

A lot of banks will have a fairly limited selection of loan products to choose from. Say you're going through Wells Fargo. You can take one of their packages but you wouldn't have access to a program being offered by Citi that might be a better fit for you. Also, I don't believe you can get sub-prime or non-conventional loans from a bank. I'm sure that varies from bank to bank.

A Broker will have access to your bank's financing as well as other banks that might have more attractive loan packages. They can also get into the sub-prime market and supply loans to people who might not otherwise qualify for a loan at a bank. Financing from a good broker will not be a rip-off.

The best example I can give is from two weeks ago when I sold my house. The buyer was going to go straight through Wells. But after checking with a broker they wound up with a lower payment and fewer closing costs. The interest wound up being 1/8% more and yeah yeah... if you calculate that over 30 years it adds up... but for this couple, the lower payment was more important.

Anyway... just my $.02

 

[xgsound]

Brokers can vary wildly. A good one will qualify you quickly, charge you at closing, get you the deal that fits your needs, and be worth the money they charge. A bad one will charge an application fee, stretch out the time as long as possible, charge more fees if they can, and never get you a loan at all.

Ask questions first because each time credit is pulled it drops your credit rating for a short period.


Jim

 

[Vette73]

Try online places as well that have guarantees like www.lendingtree.com . Not sure about any others?

 

[mrrman]

Originally posted by: Thorny

Originally posted by: spp
Does it matter which mortgage broker I go to or should I just go to several and compare?
I'm planning to buy a house this year for the first time in my life and I am not quite sure what to expect from them.

Thanks in advance

Rule #1 when buying a house, Don't use a Broker. Using a broker could cost you thousands. Just go directly to a bank to apply. Some online lenders are attractive too.

My broker saved me thousands and got me the best deal...I will always use a broker

 

[Kelemvor]

Definitely get quotes from lots of places. Don't do anything that has to deal with "Points". You can get a mortage right from a bank or from places that only do Mortgages. Sometimes the mortgages places can do better because they know the 'tricks of the trade" better and can do things the banks can't.

e.g. our first mortgage we had no where near a decent down payment so our mortgage guy gave us 1 mortgage for the down payment and then another was the actual mortgage.

Also, don't do anything with PMI because that's just throwing money down the drain.

If you want, my brother-in-law does mortgages and I can give you his information. We've refinanced twice through him already and get a better rate every time. And it can all be done remotely.

 

[Thorny]

Originally posted by: mrrman

Originally posted by: Thorny

Originally posted by: spp
Does it matter which mortgage broker I go to or should I just go to several and compare?
I'm planning to buy a house this year for the first time in my life and I am not quite sure what to expect from them.

Thanks in advance

Rule #1 when buying a house, Don't use a Broker. Using a broker could cost you thousands. Just go directly to a bank to apply. Some online lenders are attractive too.

My broker saved me thousands and got me the best deal...I will always use a broker

Can you explain how? A broker makes money getting you the SAME loan you can get yourself at a bank. ALL brokers charge fees, either directly to you or as a kickback from the bank, sometimes both. Unless the buyer is uninformed about the process, I don't see any way a broker can save you money.

 

[mrrman]

Originally posted by: Thorny

Originally posted by: mrrman

Originally posted by: Thorny

Originally posted by: spp
Does it matter which mortgage broker I go to or should I just go to several and compare?
I'm planning to buy a house this year for the first time in my life and I am not quite sure what to expect from them.

Thanks in advance

Rule #1 when buying a house, Don't use a Broker. Using a broker could cost you thousands. Just go directly to a bank to apply. Some online lenders are attractive too.

My broker saved me thousands and got me the best deal...I will always use a broker

Can you explain how? A broker makes money getting you the SAME loan you can get yourself at a bank. ALL brokers charge fees, either directly to you or as a kickback from the bank, sometimes both. Unless the buyer is uninformed about the process, I don't see any way a broker can save you money.

The bank pays the broker for bringing in the business....I paid nothing to the broker at all

 

[Thorny]

Originally posted by: mrrman

Originally posted by: Thorny

Originally posted by: mrrman

Originally posted by: Thorny

Originally posted by: spp
Does it matter which mortgage broker I go to or should I just go to several and compare?
I'm planning to buy a house this year for the first time in my life and I am not quite sure what to expect from them.

Thanks in advance

Rule #1 when buying a house, Don't use a Broker. Using a broker could cost you thousands. Just go directly to a bank to apply. Some online lenders are attractive too.

My broker saved me thousands and got me the best deal...I will always use a broker

Can you explain how? A broker makes money getting you the SAME loan you can get yourself at a bank. ALL brokers charge fees, either directly to you or as a kickback from the bank, sometimes both. Unless the buyer is uninformed about the process, I don't see any way a broker can save you money.

The bank pays the broker for bringing in the business....I paid nothing to the broker at all

Who pays the bank?