topic Hiring 2 or 3 Mortgage Brokers to compete in Mortgage Loans

Hiring 2 or 3 Mortgage Brokers to compete

Vegas247 — Mon, 02 Mar 2015 22:23:27 GMT

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......

Re: Hiring 2 or 3 Mortgage Brokers to compete

Vegas247 — Tue, 03 Mar 2015 02:04:22 GMT

Anyone?

Re: Hiring 2 or 3 Mortgage Brokers to compete

frugalQ — Tue, 03 Mar 2015 02:55:59 GMT

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.

Re: Hiring 2 or 3 Mortgage Brokers to compete

nycsimone — Tue, 03 Mar 2015 05:23:32 GMT

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.

Re: Hiring 2 or 3 Mortgage Brokers to compete

Vegas247 — Tue, 03 Mar 2015 06:38:53 GMT

@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.

Re: Hiring 2 or 3 Mortgage Brokers to compete

StartingOver10 — Tue, 03 Mar 2015 13:51:55 GMT

@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.

Re: Hiring 2 or 3 Mortgage Brokers to compete

Vegas247 — Tue, 03 Mar 2015 22:10:14 GMT

@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.

Re: Hiring 2 or 3 Mortgage Brokers to compete

DallasLoanGuy — Tue, 03 Mar 2015 22:46:22 GMT

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

Re: Hiring 2 or 3 Mortgage Brokers to compete

Zorasmiles — Tue, 03 Mar 2015 23:24:32 GMT

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.

Re: Hiring 2 or 3 Mortgage Brokers to compete

nycsimone — Wed, 04 Mar 2015 00:58:28 GMT

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.

Re: Hiring 2 or 3 Mortgage Brokers to compete

Vegas247 — Wed, 04 Mar 2015 04:47:30 GMT

@DallasLoanGuy wrote:
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

Lol DallasLoanGuy, you sound bitter. It was a question because i wanted to know how to get the best deal. Using the word scumbag sounds to me like people have and done this to you and you don't like it because just like a car shopper goes to another car dealership to check if they can beat a price the 1st dealership quoted on the exact same new car, the car salesman gets mad and doesn't liked to be shopped. I thank the others members though for letting me know mortgage brokers cost more in general, because they basically are a middle man.

Re: Hiring 2 or 3 Mortgage Brokers to compete

Lemmus — Wed, 04 Mar 2015 06:51:28 GMT

@DallasLoanGuy wrote:
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

...you're certainly entitled to your point of view DLG but imnsho, you're a bit more than biased and ...bottom line ...simply wrong.

...mortgage lenders are competitors whether they like it or not ...some actually compete for the buyer's business, others apparently expect manna from heaven ...I've dealt with examples of each in my current home hunt ...some actually know what they're doing, some are incompetent (imnsho), some just paper pushers working quantity over quality

...I've dealt with 4 different lenders during the past 3 months ...three still have current approvals open for a loan ...and each was told up front that I was working with other lenders and what it would take to win my business ...no lies and certainly no fraud (on my part at least) ...if that makes me a scumbag in your eyes, que sera, sera ...its my money

...last time I bought a home I was the sucker ...I got locked into a "scumbag" Chase LO and never went elsewhere because I simply didn't kow enough to do so ...he lied to me so many times it was ridiculous ...and bottom line, I got the shaft from him ...that was many years ago but he burnt me so bad it still rankles

...if a mortgage lender doesn't want my business they can simply refuse it (no one has so far) ...or they can offer high fees and/or non-competitive rates (there are huge differences) ...or they can demonstrate they don't know what they're doing ...or they can be slower than molasses in winter in responding to my questions ...or they can do what most other successful businessmen do ...earn my business.

..."explain" the inquiries? ...to whom? ...the LOs? ...they already know I'm working with other lenders and will use only one of them to close ...what is there to "explain" other than its a mortgage loan inquiry?

...why would you think I'm a scumbag for expecting you to compete for my business? ...every other successful business does, why not you?

Re: Hiring 2 or 3 Mortgage Brokers to compete

Lemmus — Wed, 04 Mar 2015 07:16:52 GMT

...I almost never disagree with SO10 in this forum (because she's usually right) but this is one instance where I think she has over generalised

...I don't believe its always (or even usually) true that mortgage brokers "cost more in general" ...my experience is just the opposite ...they have a large number of resources to match with your needs ...if best rates/lowest fees are your bottom line, they can get you there in most cases ...if you have "special needs" (and most do) they can find a match for you ...if you want best service or closing costs help, they can usually find a fit ...yes, they are "middle" men but thats often exactly what a buyer really needs

...my only real con with mortgage brokers is that they don't hold/service your loan after closing ...weigh that against the pros mentioned above and decide what works best for you ...mortgage brokers exist to fill a real need in the market, in many cases they can offer the buyer the best loan for their specific needs ...hth

Re: Hiring 2 or 3 Mortgage Brokers to compete

Vegas247 — Wed, 04 Mar 2015 17:27:05 GMT

@Lemmus wrote:
@DallasLoanGuy wrote:
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

...you're certainly entitled to your point of view DLG but imnsho, you're a bit more than biased and ...bottom line ...simply wrong.

...mortgage lenders are competitors whether they like it or not ...some actually compete for the buyer's business, others apparently expect manna from heaven ...I've dealt with examples of each in my current home hunt ...some actually know what they're doing, some are incompetent (imnsho), some just paper pushers working quantity over quality

...I've dealt with 4 different lenders during the past 3 months ...three still have current approvals open for a loan ...and each was told up front that I was working with other lenders and what it would take to win my business ...no lies and certainly no fraud (on my part at least) ...if that makes me a scumbag in your eyes, que sera, sera ...its my money

...last time I bought a home I was the sucker ...I got locked into a "scumbag" Chase LO and never went elsewhere because I simply didn't kow enough to do so ...he lied to me so many times it was ridiculous ...and bottom line, I got the shaft from him ...that was many years ago but he burnt me so bad it still rankles

...if a mortgage lender doesn't want my business they can simply refuse it (no one has so far) ...or they can offer high fees and/or non-competitive rates (there are huge differences) ...or they can demonstrate they don't know what they're doing ...or they can be slower than molasses in winter in responding to my questions ...or they can do what most other successful businessmen do ...earn my business.

..."explain" the inquiries? ...to whom? ...the LOs? ...they already know I'm working with other lenders and will use only one of them to close ...what is there to "explain" other than its a mortgage loan inquiry?

...why would you think I'm a scumbag for expecting you to compete for my business? ...every other successful business does, why not you?

Well said Lemmus........... "its my money"