- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
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.
5
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.
Posted on 6/21/13 at 12:01 pm to kennypowers816
quote:
What is the "extra money" aka fee you're being charged? Flat? Percentage of sale price?
The fees worksheet says 1.5% of the sale price, but he is actually charging 1.425% of the sale price. Like I said, it was all made up for the second he had the foresight to grab the rate.
Edit: MikeBRLA's comment had me go back and realize it is 1.5% of the loan, which equates to 1.425% of the sales price using 5% down.
And to those above talking about luck and bets, it was a bet on the direction of the rates. However, he knew to make the lock that second before Bernanke spoke to make those rates the worst I would end up with and to explain to me that if they did go down how he would be able to capture those lower rates.
This post was edited on 6/23/13 at 9:53 pm
Posted on 6/21/13 at 1:24 pm to nolatiger711
i was a broker for many years i know work for a bank. You had a good broker from what you have posted. But to drop a little knowledge on you..banks have better rates or the same as brokers and do not charge discount point or origination and the lender fees for banks are half of what they are for brokers..also every time UNCLE BEN opens his mouth rates go up!
Posted on 6/21/13 at 8:11 pm to hawkeye007
quote:
i was a broker for many years i know work for a bank. You had a good broker from what you have posted. But to drop a little knowledge on you..banks have better rates or the same as brokers and do not charge discount point or origination and the lender fees for banks are half of what they are for brokers..also every time UNCLE BEN opens his mouth rates go up!
Blanket statements like these are always wrong. We have in house mortgage lender and I have great relationship with bank broker, probably 70/30 bank product is better.
To OP,
Posted on 6/21/13 at 9:57 pm to ItNeverRains
OP: You're seriously buying into an extremely polished sales job. A guy cut his % from 1.5 to 1.425%????
WOWZOMGWHATADEAL!!!!!
WOWZOMGWHATADEAL!!!!!
Posted on 6/21/13 at 9:57 pm to ItNeverRains
What are 15 and 30yrs looking like right now?
Posted on 6/22/13 at 6:35 am to GFunk
quote:
OP: You're seriously buying into an extremely polished sales job. A guy cut his % from 1.5 to 1.425%????
GFUNK, weren't you a lender pre crash? If so, you may not know the massaging you could do before the new lending laws were passes are much much different than today's environment. The kin folk era of lending is no longer.
Posted on 6/23/13 at 2:36 pm to ItNeverRains
quote:
ItNeverRains
quote:
GFUNK, weren't you a lender pre crash? If so, you may not know the massaging you could do before the new lending laws were passes are much much different than today's environment. The kin folk era of lending is no longer.
7.5 basis points on that end-in any economy-is a joke. I don't care what environment you're in.
3.625 is what we closed at. Discounting down to 3.5-which is 12.5 points-was just over $700. $56/point.
Using that math, the gushing the OP is doing is more than likely salesmanship more than reality...he cut less than $50....
Posted on 6/23/13 at 4:47 pm to nolatiger711
quote:
The fees worksheet says 1.5% of the sale price, but he is actually charging 1.425% of the sale price.
His fee should be based off of loan amount, not sales price.
Posted on 6/23/13 at 9:51 pm to MikeBRLA
quote:
OP: You're seriously buying into an extremely polished sales job. A guy cut his % from 1.5 to 1.425%????
I never said that he tried to tell me he was discounting. I was just looking at what the sheet said to help answer the question earlier in the post. It says 1.5% but the fee is 1.425% of the sales price. MikeBRLA shows how I confused the fee below.
quote:
His fee should be based off of loan amount, not sales price.
I went back and that is where the confusion was. It is 1.5% of loan, which equals 1.425% of sales price because I am only putting 5% down.
The whole message is that he knew to jump on the lock for me which resulted in me paying much less, including his fee, than if I had been shopping on my own.
Posted on 6/23/13 at 10:13 pm to nolatiger711
quote:
nolatiger711
quote:
The whole message is that he knew to jump on the lock for me which resulted in me paying much less, including his fee, than if I had been shopping on my own.
Gonna go out on a limb and burst your bubble by telling you this:
His boss and/or sales manager had him call every single customer in his pipeline he's gotten a signed contract and Pre approval through Desktop Underwriter an tell them something similar.
Just saying, bro...
Posted on 6/24/13 at 2:52 pm to GFunk
quote:
GFunk
quote:
His boss and/or sales manager had him call every single customer in his pipeline he's gotten a signed contract and Pre approval through Desktop Underwriter an tell them something similar.
He is one of the two partners for his company. We had already filled out all the underwriting. There was no selling or convincing needed to have me as a customer. We had just decided to float the rate for a bit. He did not tell me about the money I was able to save by using him or pump up his role in anyway. It was a conclusion I came to when I saw the rates skyrocket the afternoon after he suggested to lock it. A jump, that I would not have foreseen as far in advance as he did.
So I am unsure what bubble of mine you are bursting???
And just because I feel that you keep trying to find "bubbles" to burst about my experience which I would not wish had happened in any other way. :beatdeadhorse:
Posted on 6/24/13 at 4:28 pm to nolatiger711
Let me explain LA to you:
You: this great thing happened to me
99.87% of everyone in LA: it really isn't that great brah, just so you know
You: this great thing happened to me
99.87% of everyone in LA: it really isn't that great brah, just so you know
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News