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Started By
Message
Why I am glad I had a mortgage broker.
Posted on 6/21/13 at 10:52 am
Posted on 6/21/13 at 10:52 am
First thanks for all the home buying help from everyone. ItNeverRains, you have consistently replied back to everything.
I want to post this for everyone else that may be in my shoes currently or in the future. This kind of story would have changed my approach from the beginning.
Background:
I had a signed purchase agreement to buy my first house a couple weeks ago and set the closing at the end of July. I figured I could shop around mortgages on my own since I saw within a time frame all of the inquiries would only impact my credit score a little. The seller suggested that I talk to her mortgage broker, too. I knew this would add a little bit on the closing, but decided it wouldn't hurt if I decided not to use him. He has been very helpful in teaching the details I did not know.
Reason:
I met with the broker the other day to start underwriting, and we talked about where I wanted to be on out of pocket at closing and my monthly note. We decided to float the rate, and he would monitor to lock it when it would swing down a little. He made the decision to lock it (without checking with me) right before Bernanke spoke yesterday. As most of you know, the rate jumped right after he spoke. The broker explained that he locked it to make it a worst case rate. He also said that we would just delay the appraisal to allow us the ability to switch lenders in case the rate does swing back down over the next week or two.
Basically, the broker was able to anticipate the jump well enough that he saved me more than what it cost me to use him. This is why I recommend that even if you think you know what is going on to suck it up and pay the extra money to have this kind of insurance and knowledge.
I want to post this for everyone else that may be in my shoes currently or in the future. This kind of story would have changed my approach from the beginning.
Background:
I had a signed purchase agreement to buy my first house a couple weeks ago and set the closing at the end of July. I figured I could shop around mortgages on my own since I saw within a time frame all of the inquiries would only impact my credit score a little. The seller suggested that I talk to her mortgage broker, too. I knew this would add a little bit on the closing, but decided it wouldn't hurt if I decided not to use him. He has been very helpful in teaching the details I did not know.
Reason:
I met with the broker the other day to start underwriting, and we talked about where I wanted to be on out of pocket at closing and my monthly note. We decided to float the rate, and he would monitor to lock it when it would swing down a little. He made the decision to lock it (without checking with me) right before Bernanke spoke yesterday. As most of you know, the rate jumped right after he spoke. The broker explained that he locked it to make it a worst case rate. He also said that we would just delay the appraisal to allow us the ability to switch lenders in case the rate does swing back down over the next week or two.
Basically, the broker was able to anticipate the jump well enough that he saved me more than what it cost me to use him. This is why I recommend that even if you think you know what is going on to suck it up and pay the extra money to have this kind of insurance and knowledge.
Posted on 6/21/13 at 10:58 am to nolatiger711
I have no experience with any of this, so I'm curious...
What is the "extra money" aka fee you're being charged? Flat? Percentage of sale price?
What is the "extra money" aka fee you're being charged? Flat? Percentage of sale price?
Posted on 6/21/13 at 10:58 am to nolatiger711
Sorry to burst the happy bubble, but if mortgage rates spiked slightly, you would hate mortgage brokers. You both placed a bet on the direction of interest rates, and red beat black.
Posted on 6/21/13 at 10:59 am to nolatiger711
Brokers suck..and I'm on the ccim path.
Posted on 6/21/13 at 11:00 am to nolatiger711
quote:
to have this kind of insurance
You had luck is all that you had. If he wouldn't have locked, sure he could have gone to another lender. With the same new higher rate.
Posted on 6/21/13 at 11:24 am to nolatiger711
I'm looking at houses right now too.
I sold 55% of my stock holdings the day before he spoke. The volitility is too much right now. I will need that money this year.
quote:
He made the decision to lock it (without checking with me) right before Bernanke spoke yesterday
I sold 55% of my stock holdings the day before he spoke. The volitility is too much right now. I will need that money this year.
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