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July 9, 2008
Mortgage Brokers
We're approaching closing and haven't locked in a mortgage rate yet. Our broker is now quoting us a higher rate than he did when we first sat down with him a month ago (it went from 6.3% to 6.8%) and a higher rate than my idle search of bankrate suggests we ought to be able to get.
I have two questions. One is about whether we can stop now and start shopping, since he's sitting on all of our paperwork. The other is about whether there is something we ought to know about bankrate, like that I'm missing something.
Comments
Unless the check has already been cut, meaning you are at the closing table, you can always shop. In fact, what you should do is fill out anlending tree app. It truly is a good way to "shop" for mortgages. You will be hounded, but that is a good thing. Itsnjust like anyhting else.
As far as bankrate goes, know that it documents a national avergae. Your rate still largely depends upon the quality of of your credit and the LTV of the mortgage eg the amount of intial equity you are willing to present at contract.
Posted by: k91 at July 9, 2008 6:08 PM
The rates went up, we are experiencing the same thing.
Posted by: nybk01 at July 9, 2008 9:28 PM
go straight to the bank. Mortgage brokers only make it more expensive and will mess up the process. Just another layer between you and your mortgage.
Posted by: guest at July 9, 2008 11:05 PM
I've had the opposite experience of Guest 11:05. I've tried to shop for mortgages on my own by going to individual banks, but my mortgage broker has always gotten me a better rate (with the SAME bank I tried directly!). I'm not sure how it actually works.
If you want a 2nd opinion to your broker, try Victor & Aaron Angel at Manhattan Mortgage - (718) 596-6425. They are fantastic.
Posted by: seahag21 at July 10, 2008 12:48 AM
We were working with a mortgage broker too who left his firm (Manhattan Mortgage) to go directly to a bank in the middle of our process. He got us a much better rate and a better overall deal directly through the bank and said that the market has shifted to where the banks are giving direct clients better deals than the brokers. Who knows if that's true but it doesn't hurt to call a few banks to get their rates on the type of loan you need.
Posted by: nycapt at July 10, 2008 9:41 AM
We just went through something similar as does anyone else trying to get loan. Until you lock in the rate, it is subject to move. In this case, the index rate that your mortgage lender uses for the loan package he/she is offering you has gone up son the rate you are being offered is going up. It's as simple as that. You can try to game the system by betting rates will come down, but if you get a rate you like it's best to lock it in then. Unitl you close, you can always switch to another lender. We did.
Posted by: bkbrewin at July 10, 2008 11:21 AM
I think that going to the bank directly works well if you're a straightforward package.
If you have a complicated earnings situation (ie freelance), then a mortgage broker is more than worth it.
Posted by: guest at July 10, 2008 11:54 AM
This has been really helpful, thanks folks.
Posted by: amanda at July 10, 2008 5:23 PM
You are best to check out both. A large mortgage broker will have information on way more lenders, their requirements and rates, than you could possibly contact yourself. See the best they can get you, and see what banks offer you directly - there's no obligation to go with a broker who's quoted you a rate anymore than there is to go with a bank you've talked with.
Posted by: guest at July 10, 2008 5:26 PM
Mortgage broker endorsements are trolls. Every mortgage broker still has to go through a bank and the banks' qualification process. Especially now after the ol' meltdown. Trust me, all a MB does it add another layer to the process. F*** 'em. Complicated does not matter, it's not like the MB can vouch for you. The bank is going to see the same thing, or require the same thing
Posted by: guest at July 10, 2008 10:52 PM
Is it common for a broker to go outside his firm?
We've got a rate on offer from a bank that is much lower than what our broker came up with, but we did pay him ($450) and he's got all our paperwork in a nice stack. I want to say "Please fax the stack to Chase." I have no idea whether or not that is "done" though.
Posted by: guest at July 11, 2008 9:29 AM
seabag21 how many mortgages have you gotten?
I mean, if you've gotten mortgages often enough to have a representative sample, you're probably somewhat special, no?
Posted by: guest at July 11, 2008 12:28 PM
Don't you have all the paperwork you've given him yourself? I mean, you gave him copies, not originals, right?
Posted by: guest at July 11, 2008 2:13 PM
Take a look somewhere else. Wells and that Brian scott cohen closed my loan in 15 days. Anyway, bankrate has rates that are not amrket rates they are a week old and go by national avergaes. Try the major banks or a broker, but a broker has to go to the bank anyway go direct..Next time if you like the rate lock it try wells 718 780 9132
Posted by: VfromR at July 15, 2008 10:43 PM
He wasn't sitting on our originals but we did pay a fee and he did have everything in a file that he could have flipping walked over to the bank had he chosen to. We had to spend a lot of time at the copier preparing another application.
Though ... we did give him originals, originally. We sat down with him turned over the originals and he was like "my copier is really slow. instead of making you wait I'll fed ex these to you." He did FedEx them (he's not a scoundrel at all) but if I had it to do over we would have shown up at his office with originals and copies side by side. Hopefully, I won't have to do this over!
I'll let you all know how it plays out.
Posted by: amanda at July 16, 2008 9:17 AM
We filed an application directly with the bank and had it approved in 10 business days. Appraised, the whole nine yards.
And, yup: at a much lower rate than our broker was coming up with.
Posted by: amanda at August 1, 2008 5:48 PM
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