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Answers (15)
- NTETS, "Mr Caveat"
- Contributions:6436
stay away from "famous" banks like BOA, chase, ect... but feel free to go with other banks/ direct lenders. www.bankrate.com... be prepared to make several phonecalls ^_)^
- Justin McHood, "justinmchood"
- Contributions:13
Great question!
My first thought would be that lenders don't matter - loan officers do.
And there are three types of loan officers (at least!).
But a couple of other important related thoughts would be make sure you know how your loan officer is paid and how much your loan officer is charging you.
Justin
My first thought would be that lenders don't matter - loan officers do.
And there are three types of loan officers (at least!).
But a couple of other important related thoughts would be make sure you know how your loan officer is paid and how much your loan officer is charging you.
Justin
- Roxy Redenbaugh, "LoanLady Nationwide"
- Contributions:125
You should really click on this link! Some of these answers to your question are from well meaning but misinformed people. Nate has done an excellent job of explaining the difference.
SEE WHAT ZILLOW'S NATE MOCH HAS TO SAY ABOUT THIS SUBJECT!
SEE WHAT ZILLOW'S NATE MOCH HAS TO SAY ABOUT THIS SUBJECT!
- Tristan Celayeta, "Tristan Celayeta"
- Contributions:400
Rules are for fools! And you're being advanced a lot of generalizations drawn from personal experience or at times from real estate dilettantes.
Anthony Robinson is dead on.
Spener Rascoff has provided a great link to more information than you want, not more than you need.
Regardless of which you choose pay attention to the particular people. There are great brokers and great loan officers, there are abysmal both. In fact you will find differences with different people in the same organization.
Anthony Robinson is dead on.
Spener Rascoff has provided a great link to more information than you want, not more than you need.
Regardless of which you choose pay attention to the particular people. There are great brokers and great loan officers, there are abysmal both. In fact you will find differences with different people in the same organization.
- flying toonces
- Contributions:6
I am in escrow on a home right now and I worked with a broker I found on Zillow mortgage marketplace. I chose him because of reviews, location, and fees, and without a doubt he has lived up to my expectations.
I've noticed that depending on your broker, you will pay on average 1/2 to 1 point less in total closing costs, and in my case I received excellent personal service. If I had gone with my credit union instead, I would have paid more and my customer service would have been good, but not as comparable to what I received.
I think it's a personal choice, and for a first time homebuyer like me, it was nice to have an advocate on my side.
I've noticed that depending on your broker, you will pay on average 1/2 to 1 point less in total closing costs, and in my case I received excellent personal service. If I had gone with my credit union instead, I would have paid more and my customer service would have been good, but not as comparable to what I received.
I think it's a personal choice, and for a first time homebuyer like me, it was nice to have an advocate on my side.
- Space_Truss
- Contributions:177
Go with a bank, or a direct lender. You know what you will get.
If you have problem with a bank, you can find someone to complain.
If you have problem with a bank, you can find someone to complain.
- Anthony Robinson, "Diversified Mortgage"
- Contributions:2
I've worked as a loan officer at one of the largest mortgage banks in the country and I've worked as independent mortgage broker. Your question really boils down to your experience level, if you're new to buying and need more personalized service go with a broker, we have the ability and incentive to be at your beck and call. If you know exactly what you want and know your qualification status go with a bank they can probably give you a slightly better deal, but with the bank you are just a number and if things get "hairy" don't expect a shoulder to cry on.
- Johnny James, "Palmdale Mortgage"
- Contributions:406
I am not surprised to see the broker haters rise to the surface but what happened to the good neighbor policy. Can you really say in your honest opinion that I broker can not be competitive as far as pricing and closing the deal? Or does the fact that you are not a broker just cause you to lash out at brokers and place blame on them? It was the same lenders that made billions of dollars that you will gladly send customers to that caused the problems. Brokers do not underwrite or approve loans they originate them.
- Julie Messina, "CNN Mortgage"
- Contributions:70
You wanted to know if it was easier to buy a REO property working with Bank or Broker financing. Foreclosure inventory (or lack of) has created an unusually competitive enviornment for lower priced homes in some markets. Today I talked to a realtor who called it a "feeding frenzy". You know, you can have the best Wells Fargo loan approval in the world, and may still be beating your head against the wall three months from now when five or six of your offers have not been accepted because you did not come in as the "highest and best". Most homes are listed intentionally low to create this frenzy where the seller throws out all offers except the one he wants. It is very hard on the buyers and unfortuntely has nothing to do with where your loan approval is coming from.
If I were you, I would interview a couple of banks and a couple of mortgage bankers all on the same day. Get a GFE from all of them "based on the day's opening rate sheet". This will give you an idea of where you can get a fair price. or, If you are working with a realtor he/she will know who to use that can get the job done. Some of the Zillow rate quotes tend to be a too good - but talk to a mortgage banker on this site too, 've seed a couple that have high ratings from satisfied customers. Keep in mind It's possible the REO bank may require you obtain approval with their own origination arm to make sure you qualify. In the end you can use whomever you want as long as they get docs to the table on time.
If I were you, I would interview a couple of banks and a couple of mortgage bankers all on the same day. Get a GFE from all of them "based on the day's opening rate sheet". This will give you an idea of where you can get a fair price. or, If you are working with a realtor he/she will know who to use that can get the job done. Some of the Zillow rate quotes tend to be a too good - but talk to a mortgage banker on this site too, 've seed a couple that have high ratings from satisfied customers. Keep in mind It's possible the REO bank may require you obtain approval with their own origination arm to make sure you qualify. In the end you can use whomever you want as long as they get docs to the table on time.
- CORONA NICK
- Contributions:2218
I've bought and refied more than once, I would not use a broker... they got a bad rap right now...
"- broker may receive incentives from lenders, so s/he may not advice the best deal for you
- brokers work with smaller lenders, that may be currently saturated with refinancing applications. So expect longer processing delays
- smaller lenders may have smaller processing fees"
Concerned_Buyer, this is utter nonsense!
zzhh, you have received 3 ridiculous answers and I urge you to explore both options (Broker/Bank) and ultimately choose someone who you feel comfortable working with. Pick not only the best rate and fees, but the best service. Choosing a company because of it's name makes little sense since stupid people work for large banks as well as small ones. All it takes is a bad loan officer from any source to destroy your loan. Take my advice, shop both channels and pick a person to do your loan, not a company.
- brokers work with smaller lenders, that may be currently saturated with refinancing applications. So expect longer processing delays
- smaller lenders may have smaller processing fees"
Concerned_Buyer, this is utter nonsense!
zzhh, you have received 3 ridiculous answers and I urge you to explore both options (Broker/Bank) and ultimately choose someone who you feel comfortable working with. Pick not only the best rate and fees, but the best service. Choosing a company because of it's name makes little sense since stupid people work for large banks as well as small ones. All it takes is a bad loan officer from any source to destroy your loan. Take my advice, shop both channels and pick a person to do your loan, not a company.
- Andrew Walter, "RealEstateByAndrew"
- Contributions:17
- Jeff Konstant, "jkonstant"
- Contributions:1970
Find one with an in house underwriter. Many large institutions send off your information to somebody in another state. Having everything under one roof can expedite things, especially if you want a quick close. Wells Fargo and Countrywide require you be pre-approved by them. You do not have to actually use them, but they will qualify you and then hope you will use them.
- Concerned_Buyer
- Contributions:5
There are many pros and cons for using a broker rather than a bank. Just to throw some ideas in:
- broker may receive incentives from lenders, so s/he may not advice the best deal for you
- brokers work with smaller lenders, that may be currently saturated with refinancing applications. So expect longer processing delays
- smaller lenders may have smaller processing fees
- broker may receive incentives from lenders, so s/he may not advice the best deal for you
- brokers work with smaller lenders, that may be currently saturated with refinancing applications. So expect longer processing delays
- smaller lenders may have smaller processing fees
Should I go with Bank or Mortgage Broker?
I am now trying to buy REO Home. Some says better to go with reputable landers (such as famous banks) to get a deal or contract. What about going with Mortgage brokers? How the REO seller look at the buyer side? Will there be delay in contract? Can I ask pre-approval letters from both from bank and broker?
Thanks
zzhh
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