Hiring 2 or 3 Mortgage Brokers to compete

[Vegas247]

Is it a bad or good idea to work with 2 or more mortgage brokers to compete not only for best rate, closing cost, but to get the deal done and closed??? I don't mind the Hard Pulls......

[Vegas247]

Anyone?

[frugalQ]

Isn't the broker supposed to shop your loan with various lenders?

I'm not sure it's beneficial to use multiple brokers. It may be beneficial to use a broker and find your own mortgage lender and compare terms.

[nycsimone]

Generally speaking, anytime you hire a broker you're going to pay more than going directly to a lender.

The broker shops around rates for you, but then he/she gets paid as well which many times means a rate a bit higher than what you qualify for or more closing costs. If you have decent credit just shop around online and see who's got the best deals. Most lenders offer the same rates and the difference is the closing costs.

[Vegas247]

---

@nycsimone wrote:

Generally speaking, anytime you hire a broker you're going to pay more than going directly to a lender.

The broker shops around rates for you, but then he/she gets paid as well which many times means a rate a bit higher than what you qualify for or more closing costs. If you have decent credit just shop around online and see who's got the best deals. Most lenders offer the same rates and the difference is the closing costs.

---

Thanks......so what should I do? Go directly to a mortgage bank that has underwriters in house? Does having underwriters in house denote that they are not a mortgage broker, but a mortgage bank. The houses I bought in the past were through Countrywide Home loans (RIP). That's why I am lost these days.

[StartingOver10]

---

@Vegas247 wrote:

---

@nycsimone wrote:

Generally speaking, anytime you hire a broker you're going to pay more than going directly to a lender.

The broker shops around rates for you, but then he/she gets paid as well which many times means a rate a bit higher than what you qualify for or more closing costs. If you have decent credit just shop around online and see who's got the best deals. Most lenders offer the same rates and the difference is the closing costs.

---

Thanks......so what should I do? Go directly to a mortgage bank that has underwriters in house? Does having underwriters in house denote that they are not a mortgage broker, but a mortgage bank. The houses I bought in the past were through Countrywide Home loans (RIP). That's why I am lost these days.

---

Yes you should shop, but IMO I wouldn't use a mortgage broker. Use a mortgage banker that underwrites and funds their own loans. 

As to the comment that rates are the same from lender to lender, that simply is not so. Money is a commodity and the various lenders charge different rates so the same loan as well as different costs. I had a customer of mine recently (I am a Realtor) come in with a local lender approval. Once we went to contract their lender provided the interest rate and costs to close. The rate was a little high, 4%, but the costs were extremely high, $12k on a $230,000 purchase. I sent them to another mortgage banker I do business with and he got the deal done at 3.675% and total costs to close of $6800 including escrows. So yes, shop your lender.

[Vegas247]

---

@StartingOver10 wrote:

---

@Vegas247 wrote:

---

@nycsimone wrote:

Generally speaking, anytime you hire a broker you're going to pay more than going directly to a lender.

The broker shops around rates for you, but then he/she gets paid as well which many times means a rate a bit higher than what you qualify for or more closing costs. If you have decent credit just shop around online and see who's got the best deals. Most lenders offer the same rates and the difference is the closing costs.

---

Thanks......so what should I do? Go directly to a mortgage bank that has underwriters in house? Does having underwriters in house denote that they are not a mortgage broker, but a mortgage bank. The houses I bought in the past were through Countrywide Home loans (RIP). That's why I am lost these days.

---

Yes you should shop, but IMO I wouldn't use a mortgage broker. Use a mortgage banker that underwrites and funds their own loans. 

As to the comment that rates are the same from lender to lender, that simply is not so. Money is a commodity and the various lenders charge different rates so the same loan as well as different costs. I had a customer of mine recently (I am a Realtor) come in with a local lender approval. Once we went to contract their lender provided the interest rate and costs to close. The rate was a little high, 4%, but the costs were extremely high, $12k on a $230,000 purchase. I sent them to another mortgage banker I do business with and he got the deal done at 3.675% and total costs to close of $6800 including escrows. So yes, shop your lender.

---

Thanks StartingOver10. I think I found a Mortgage Lender (not broker) thanks to your advice. I found out that they carry loans. They are called National Residential Mortgage. 

[DallasLoanGuy]

How are you going to explain the inquiries?

1. it is a scumbag thing to do to a loan officer

2. the 2nd and/or 3rd guy isnt going to compete anyway unless you commit fraud and lie about the other credit pulls

[Zorasmiles]

It's one thing to shop mortgage brokers to see who you feel better to work with, but to try and create a cut throat environment is bad business IMHO.  I personally plan on speaking with mortgage bankers/brokers that have been referred but in no way do I plan on playing them against eachother.  Trust me I want the best overall deal but I definitely want to sleep at night lol  It's like shopping for realtors, you have to be comfortable with who you're working with and working for you.

[nycsimone]

Yes! As others said...use a Mortgage BANKER not a Mortgage Broker. I closed on my first home today and my FICO was a 742 and ended up going with my Credit Union. It was hands down the best offer.