I love my mortgage broker, but....

[newmomnewme]

I absolutely love my broker. He has been working with me since May 2013. He told me EXACTLY what I needed to do to improve my credit score, he is knowledgeable, encouraging, and professional.  I started submitting docs for USDA 12/12/13, and had a pre-approval on 1/2!!  Too bad the builder wouldn't budge on his over priced homes...lol  So, now, I am moving to a different area (for work) and my income disqualifies me for a USDA loan in DE.  I am over the income limit by $900....UGH

My broker has suggested I go conventional or DE bond program. I am on a mission to get my CS up as high as possible before he pulls my credit again in mid-April early-May. Ryan homes in DE is offering a "free" morning room and rec room if I go with their financing. I would have to give up my broker right???  

Do I explain all of this to my broker and see if he can compete with something like this??  Then go with whoever can give me the best deal??

Should I put in an application for NFCU's 100% financing on my own to compare pricing? I hear that only 700+ are approved for this loan....

I really don't want to leave him in the cold, he has worked so hard...but, if he can't give me the best deal, I will send him a gift card and thank you not and go in another direction! 

[edcampbell613]

You are not out buying a toaster, this is a HUGE amount of money YOU are paying for.

Let him know what you can do elsewhere, sometimes they can match it.

[ezdriver]

I think that you answered your own question ... unless your broker can pay for the morning/rec room.

[StartingOver10]

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@ezdriver wrote:

I think that you answered your own question ... unless your broker can pay for the morning/rec room.

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Morning rooms or rec rooms don't come for free.

It is very possible, even probable, that the rate and/or the fees and closing costs will be higher on the builder loan to accomodate either the entire cost or most of the cost of the rec room/morning room.

The only way to know is to get a GFE from both your current mortgage broker and the builders broker and compare the costs and rate to see.

I would be upfront with your current mtg broker and tell him he has competition and tell him what the incentive is for you.

[n0smirc]

Have any kids?  Are they in afterschool care/daycare at all?  That can be used to bring down the qualifying income.  I'm just a hair above the USDA income limit for my area before my children & childcare are calculated in the mix. Just hoping your broker took that under consideration as well. 

[ezdriver]

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@StartingOver10 wrote:

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@ezdriver wrote:

I think that you answered your own question ... unless your broker can pay for the morning/rec room.

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Morning rooms or rec rooms don't come for free.

It is very possible, even probable, that the rate and/or the fees and closing costs will be higher on the builder loan to accomodate either the entire cost or most of the cost of the rec room/morning room.

The only way to know is to get a GFE from both your current mortgage broker and the builders broker and compare the costs and rate to see.

I would be upfront with your current mtg broker and tell him he has competition and tell him what the incentive is for you.

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Not necessarily. There are many significant business benefits to a builder [I am a sales rep for a National builder] to have its buyers' file handled by its own mortgage partner without any incremental costs to the buyer. Not a single one of my buyers has ever used an outside lender unless our lender partner could not do the loan for whatever reason. We contribute 3% of the home's final cost towards closing costs when our lender partner is used. Outside lenders just can't beat that. That said, I always encourage my buyers to do as you suggest and investigate alternating mortgage financing sources using the GFE tool to make comparisions as equivalent as possible.