Would a broker really help?
I have a solid credit rating, will be putting down about 40% as downpayment and am considering either a fixed rate 30-year or 15-year mortgage, zero points. I would be seeking a mortgage of about $350k. This seems to me a really straightforward not very sexy case, and I’m wondering whether using a mortgage broker could really in my scenario. Thanks.
clee321
in Mortgage 11 years and 2 months ago
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theoperadiva | 10 years and 6 months ago
Just wanted to update Ryan Pratt’s information if anyone is finding this message seeking a broker. Ryan Pratt Private Mortgage Banker NMLSR ID 64766 Wells Fargo Home Mortgage | 150 East 42nd Street, 31st Fl | New York, NY 10017 MAC J0161-311 Tel 212-214-7743 | Cell 347-866-9983 | Fax 877-401-6135 Ryan.Pratt@wellsfargo.com
kostya | 11 years and 2 months ago
unless you know the market really well, you might be better off getting a broker. Some brokers have come in for a bit of stick recently, but if you use a reputable broker such as http://overseas-mortgage.co.uk you should be fine
mortgagepro | 11 years and 2 months ago
Adding my .02 from a broker perspective, brokers work through wholesale conduits, some of which do not have a retail presence. Those that do have a retail presence will price the same or higher than the broker will offer, plus may also impose higher fees associated with the loan. (i.e. I have seen retail bank attorney fees as high as double the fees my bank attorney charges.) Most importantly, in addition to being competitive, a good mortgage broker with decades of experience will have your back all along the way. I am not just referring to your financing, but when any other factors you encounter the broker can prove a valuable ally. Far from least important, the broker is readily available (at all hours) and can customarily expedite your financing in a fraction of the time; which can be extremely important when negotiating mortgage contingencies and other time sensitive factors concerning your purchase. As mentioned above, it is always good to get a comparison and go with whom you are most comfortable with. Good luck with your purchase! -Adam Roberts South Shore Mortgage NMLS#1310 631-956-0111 x218 adamr@fast2fund.com
hawaiismurf | 11 years and 2 months ago
I found significantly better rates and wider product selection via the big banks (Citi, Wells, Chase) last year vs the mortgage brokers I contacted. You should explore all options – it’s free to you, until its time to order appraisal. So you can get multiple options from different sources before deciding. I actually paid for multiple appraisals and spent a couple thousand, and then selected the bank to go with. It was a modest cost in the overall purchase picture.
skeer126 | 11 years and 2 months ago
I am also a mortgage broker and will tell you a few things: 1) Dont go to a credit union- They usually have lock in fees to lock n your rate and are torturous to close on loans. 2) Use a broker if possible. We do this all day everyday and get paid more than people at larger banks which means we have more to lose on each deal and handle it with great care. You will get a better deal if you know what to look for. 3) Not all mortgage brokers are created equal- Just because you pass a test and can originate loans doesn’t mean that your loan will be as easily done with any of us. The more experience someone has, the more stuff they know to be aware of when processing and submitting your loan to underwriting and be wary of certain title issues. 4) You will receive a GFE (good faith estimate) when they disclose your file and depending on how the loan officer tracks rates and the bond market, i would have them bring you to a bank that can lock your rate right away and give you a float down option if rates get better. At this point you will receive a second GFE which shows your rate lock and breakdown of what you are being charged. This cannot deviate from when you lock. Very few banks give you this option and i think its awesome to give you guys the option. Also not alot of loan officers will tell you about this either because it could affect how much they make and/or be a little more work on their end. If you have good credit and income, it should be a breeze. Just make sure you are getting a good deal 🙂
brokelin | 11 years and 2 months ago
All mortgages are NOT sold to others. In my case, I used a mortgage broker to source a lender who would lend in a four-unit coop, with 10% down, a jumbo loan. I had that place, and that loan, for almost a decade, and it was never sold, the bank who made the loan kept it til I paid it off when I sold…this is known as a portfolio lender or loan, meaning te bank always intended to keep it in its portfolio…likely because it did not meet the standards to sell to Fannie or Freddie. Portfolio lenders still exist. And if you are buying a coop or condo in a smaller building, they may well be your best friend, as they look at the real risk of the loan, not some arbitrary national standard that doesn’t like small buildings.
resident2 | 11 years and 2 months ago
1.) There are many Banks that no longer work through Mortgage Brokers: IE Citibank and many others. 2.) It depends on what it is you are buying. 3.) Learn the difference between Mortgage Broker and Bankers. All mortgages will be “sold” to another institution, no matter where you initiate it through. If you are not in the business and know the vocabulary, it would help to use some one to push it through and deal with all the paperwork for you. If you choose a mortgage Banker, Broker or direct mortgage officer with any of the Banks that do not deal through Brokers depends on what you want to buy. I have closed a couple of Jumbo loans through Citi Bank recently and they were on top of every issue and closed on time. But just as a referral to a good Real Estate Broker is essential, so it is for the mortgage guys. Just because they work behind a big name, does not mean that individually they are a good fit for the job.
bk1lnite | 11 years and 2 months ago
I did a refi last year with Sterling National Bank (which bought Universal Mortgage) and the loan was sold to WF. It’s certainly worth shopping around, asking both lenders and brokers can they do for you. An advantage of a good broker (or an operation like SNB that lends then sells the loan to one of the investor banks they work with) is that they can shop the loan around for you. If you apply with one bank, then go to another you could end up paying twice for application fees or appraisals. I found Astoria Federal to be a good reference point – they publish rates every day on their website, currently 4.25% for 30-year and 3.375% for 15-year conforming. I might have been able to get 1/8 better rate with Astoria when I got my loan, but when I contacted them they were a bit old-school. Everything had to be done by fax or in person, and I preferred to do most everything via email.
brokelin | 11 years and 2 months ago
Besides the possible benefits mentioned above, potentially better rate and/or better service, there’s the additional issues that might arise from what you are buying. If you are buying in a small building, a typical brownstone or other small building, certain banks wont’t lend to you at all…a good mortgage broker with connections with a lot of banks will find you a lender (it has to be a good large one – there are some, some popular on this site, who are smaller and only have a few banks they work with, and thus CANNOT get you the best deal out there.) It can’t hurt to check with a broker, compare with the banks, or with a few brokers, too, in any case…it doesn’t cost you, shop around. Also, a broker who can tell you you about the rates different banks offer can save you from having to check with a lot of banks yourself. Now, if you have access to private banking, say, through your job, the rate there will be better than any other.
theoperadiva | 11 years and 2 months ago
We were actually very surprised to get better rates from a broker than from our bank on both homes we have purchased. The fees were much lower, and the turnaround time was super fast with the broker. We used Ryan Pratt at DE Capital. Our mortgage was immediately sold to Wells Fargo (all DE Capital loans are). Doesn’t hurt to ask, right? Ryan R. Pratt > > Private Mortgage Banker > NMLSR ID 64766 > > DE Capital Mortgage, LLC | 205 E 42nd St, FL 6 | New York, NY 10017 > MAC M6601-061 Phone (212) 905-5119| Cell (347) 866-9983| Fax (877) > 302-1085 > > ryan.r.pratt@decapitalmortgage.com
vthatcher | 11 years and 2 months ago
A broker can definitely do better than a bank. I am a broker. Being that I can control what I charge, My rate/offer would be better than a bank. The Bank has to pad the rate to make a certain premium- say 2.5-4%, which involves “selling” you a higher rate. A banker does not have to disclose their fee, a broker does. I would be happy to put together a GFE and Fee worksheet for you. It takes about 5 minutes, Im in the office 8am-8pm. Vanessa Thatcher Senior Loan Officer NMLS# 41404 Atlantic Home Capital 4175 Veterans Memorial Hwy, Ste 310 Ronkonkoma, NY 11779 Office: 631-687-3510 x106 Direct Dial: 631-468-8809 Direct Fax: 631-918-5222 Cell: 631-672-4113 “Pennies don’t fall from heaven; they have to be earned here on earth” ~Margaret Thatcher~ Website: www.atlantichomecapital.com You can catch me in the directory at www.Brownstoner.com www.montauk-online.com http://brickunderground.com/directory/listing/guide/mortgages NEW SITE http://www.bktothefullest.com
evperry | 11 years and 2 months ago
As a licensed MLO (Broker) I doubt a broker could do any better of a job for you than a bank. The pricing would be about the same. The major benefit is speed and how closely someone pays attention to your deal. We get paid a point (equal to 1 percent) or so on each deal and have less deals on the table. The retail guys tend to make less per deal so its more of a factory type of thing. Imagine Home Depot vs a local mom and pop lumber yard. It all costs the same, but what do you prefer? -e