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Mortgage Broker Dilemma

D

DBL

Platinum Member
To make a long story shorter....

I signed a contract to buy a condo at the end of August. Since then, there has been a multitude of problems relating to the Title. Apparently the owner who passed away was in loads of debt. So these past months have been spent trying to clear the title.

Originally, I went with a mortgage broker recommended by my attorney. She quoted me a rate that I knew was high (6.5%). At first, I wasn't even sure I could qualify for the mortgage and was delighted to find out that I did qualify. I figured, incorrectly, that the rate was on the high side b/c of my income level compared to the mortgage amount.

In the months that followed, that original commitment expired and I had to apply for a commitment again. It also became imperative that we close as soon as possible as my lawyer informed me that the property would be sent to foreclosure in the middle of February. At this point I started to do some more research and decided that in addition to applying through my original mortgage broker, I would use the Lending Tree service (highly recommended) where individual mortgage brokers compete for your business. I settled on a broker who offered me a rate of 5.75 and offered to postpone the application fee until closing. That was his guarantee that he could get everything done in time. He did.

Well, at some point the original mortgage broker decides to lower her rate to 5.75 from the 6 1/8 she was quoting the week before. I have no idea how she found out. I hadn't even gotten a chance to explain the situation to her. My lawyer claims not to have told her but his office does work closely w/ this mortgage company so I'm sure the information was around if someone got curious enough.

I explained to the second mortgage broker that I got my original mortgage broker to match the rate and was going to go with her. He became upset and pointed out that I was screwing him even though he did the job he said he would do. He claimed I was rewarding the original mortgage broker who was trying to screw me in the first place. I offered to pay him the application fee as a good-will gesture but he claimed not to want it. The thing is, I think he has a point and I really did enjoy working with him a lot more overall. However, my lawyer seems to be more comfortable with the original mortgage broker, although he says it's ultimately my decision.

So, what would you do?
 
I go with the guy who did the work.
I just recently went through the same thing the bank was offering 6.5 on a renewal I got a morguage broker to get me 5.25 over 5
Bank offered to match , sorry where were you when I needed it? I think it sends a message they better keep their pencils sharp and if they service fee me to death.
Well, there are others .
The bank originally said oh well we can't offer you less but maybe if you moved all your other banking over to us. . .
Excuse me? the other bank offered me a better rate not knowing me from Adam?
Later dudes you can compete again in 5
 

go with the 2nd guy!!! The first one was scammy and shady enough to TRY to screw you, she'll do it again if given the chance. Trust me, going with someone who you trust.... forget what your lawyer said, remember lawyers are all slimballs, and let's not forget how he leaked the info to the the girl!!! there are in it together.
 
Yeah, I tend to agree. I mean I can't fault the 2nd broker for anything, whereas I'm not sure I can say the same for the original broker. The thing that is different from your situation is that I never mentioned the 2nd broker to the 1st broker, so it's not like I know for sure why the rate suddenly came down. It is possible (although probably not too likely) that she was able to lock in the rate at a low point that happened to match the 2nd brokers rate. I wonder what the first broker would say if I asked her why the rate suddenly changed?
 
Originally posted by: TranceNation
go with the 2nd guy!!! The first one was scammy and shady enough to TRY to screw you, she'll do it again if given the chance. Trust me, going with someone who you trust.... forget what your lawyer said, remember lawyers are all slimballs, and let's not forget how he leaked the info to the the girl!!! there are in it together.
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But the problem is that it is most important for me to close the deal sucessfully and I wouldn't want to screw that up.
 
Ask your lawyer point-blank if he expects to have any problems if you decide to go with the second lender. I'm sure the lawyer and the first broker have some side deals going and that's why you were quoted a high rate initially. Most people have no clue how to shop for a mortgage and would just go with the lawyer's recommendation. You'd like to think the lawyer has your interests at heart, but realistically few of those people are going to be repeat customers, good or bad experience. He deals with the broker every day, so that's who he wants to keep happy.

I have no doubt your lawyer told the first broker you got a better rate but you'll never prove it. The way this operation goes, the lawyer's buddy will get all the business as long as they match the best rate. That way he'll get his "referral fees" (don't call it a kickback!). But they don't offer the best rate unless they have to, as you can see. I'd go with the second guy.
 
This is why you should shop around for the best deal before you apply, not while you are in process. Personally, I do business like your 2nd broker and do not cater to 11th-hour bidding wars. Unlike him, I don't get emotional or upset about it, but I don't play those games either. Nothing but bad feelings and confusion and doubt for the borrower is to be had from last-minute shopping and bidding. Application is the time to negotiate rate and fees, not after the broker has invested significant time and money into your approval.

As for who you should go with, that is your decision. There is MUCH more to a mortgage that just the interest rate. What about points and fees? Who has sent their latest estimates to you in writing? Who is most likely to close in your now tight timeframe? Ask yourself, who do trust more? There's your answer.
 
Originally posted by: Vic
This is why you should shop around for the best deal before you apply, not while you are in process. Personally, I do business like your 2nd broker and do not cater to 11th-hour bidding wars. Unlike him, I don't get emotional or upset about it, but I don't play those games either. Nothing but bad feelings and confusion and doubt for the borrower is to be had from last-minute shopping and bidding. Application is the time to negotiate rate and fees, not after the broker has invested significant time and money into your approval.

As for who you should go with, that is your decision. There is MUCH more to a mortgage that just the interest rate. What about points and fees? Who has sent their latest estimates to you in writing? Who is most likely to close in your now tight timeframe? Ask yourself, who do trust more? There's your answer.
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Yeah, I left out the other details b/c they are basically the same. There are no points and the fees are about the same. I understand your point about shopping around before but in this case I was up front with the 2nd broker, so he knew what he was getting into. I guess he figured that he would get the deal as long as he had the best rate. I just didn't think about the possibility that they would both come in with the same rate.
 
put yourself in the second brokers shoes..how would u feel if you did all the work on time as promised for someone in need and then they decided to go back to the original guy who they didnt feel comfortable with in the first place...

dude thats just wrong to screw someone out of their deserved pay.
 
Originally posted by: kranky

I have no doubt your lawyer told the first broker you got a better rate but you'll never prove it. The way this operation goes, the lawyer's buddy will get all the business as long as they match the best rate. That way he'll get his "referral fees" (don't call it a kickback!). But they don't offer the best rate unless they have to, as you can see. I'd go with the second guy.
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The reason I'm not so sure about this is that it was done in such a clumsy way. I was planning on confronting the 1st mortgage broker about the rate myself, so it really doesn't make a lot of sense for my lawyer to go behind my back. I'm still inclined to go with the 2nd broker though as I know he's been pretty admirable, although he did take it a bit personally.



 
Thanks for your opinions. I will probably ask my lawyer if he has a problem if I go with the 2nd broker and go with him.
 
It's your money...do whatever you want. You even offered to pay for the application fee out of a goodwill gesture.
Don't be pressured by anything other than what you feel comfortable with.
 
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