Should we use a mortgage broker? | TigerDroppings.com

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GeauxBlonde
LSU Fan
Member since Feb 2013
42 posts

Should we use a mortgage broker?



After talking with a builder, he suggested that, as a first time home buyer, we should talk with a mortgage broker. He also recommended one that he deals with on a regular basis.

In all my house research, I never even thought about a mortgage broker. Can yall give me your thoughts on using one, pros/cons, etc. I don't have any knowledge in this area so any and all advice is appreciated.







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lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
124 posts

re: Should we use a mortgage broker?


hope i can help, to be short, as mtg broker, we shop all the lenders for the best interest rate. the banks dont have that option. on any conventional or govt loan, no fee's from us, no points/origination cost, generally the bank will charge you some form of orignation/points plus their other junk fee's.

shoot me your email and I'd be happy to help you out, I'm here locally in Baton Rouge.






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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
22559 posts

re: Should we use a mortgage broker?


quote:

on any conventional or govt loan, no fee's from us, no points/origination cost, generally the bank will charge you some form of orignation/points plus their other junk fee's.


Not disagreeing -- but how do you guys make money?






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lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
124 posts

re: Should we use a mortgage broker?


Abt 2-2.5 yrs the fed reserve board changed our compensation plan. Now We get paid by our lenders, we have set compensation plan, we get paid the same regardless what the rate is. By doing this,it works better for the borrower.





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6576 posts

re: Should we use a mortgage broker?


quote:

hope i can help, to be short, as mtg broker, we shop all the lenders for the best interest rate. the banks dont have that option. on any conventional or govt loan, no fee's from us, no points/origination cost, generally the bank will charge you some form of orignation/points plus their other junk fee's. shoot me your email and I'd be happy to help you out, I'm here locally in Baton Rouge.


Shop both banks and mortgage lenders, anyone saying on every product available they have the best rate is writing a pretty big check if you get my drift.. And it varies mortgage lender to mortgage lender. I guarantee I know a bank on investment loans you can't touch.

The best thing you can do is know exactly what type of loan product you are looking for (97/3, 95/5, 80/10/10, 80/20, etc....) and shop both. You may very well get the best rate from a mortgage lender, but it is not always so.






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lsu480
LSU Fan
Downtown Scottsdale
Member since Oct 2007
71167 posts

re: Should we use a mortgage broker?


The short answer is yes you should. Also, you should use two and have them compete to get the deal. Don't tell them you are working with someone else until the very end though.


This post was edited on 3/8 at 5:27 pm


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guttata
LSU Fan
prairieville
Member since Feb 2006
20116 posts

re: Should we use a mortgage broker?


I believe the mtg co gets a set par rate, say 2.75%. If you(buyer) want that par rate, you are going to pay all closing costs, in addition to the 1% or so the mtg co gets. If you do a no close loan with the mtg co, they will offer you a rate of around 3.75% with the bank paying the mtg co the 1%. Either way the mtg co is getting their 1%, either from you up front, or from the bank in the form of a higher interest rate offered to you. There is no way for you, the buyer to get that par rate and also have to not pay closing costs.





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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4768 posts

re: Should we use a mortgage broker?


quote:

Shop both banks and mortgage lenders


This is what you should do. Multiple hard credit inquiries of the same type are treated as one for FICO scoring purposes if done within a specific time frame. So if you get a couple of banks and a broker to pull your credit, it will only count against your score as if you had one inquiry. I just closed on my house 2 weeks ago and ended up going with a broker. They matched the amount of closing costs our builder's lender was going to pay and charged no points or origination fees. Good luck.






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csorre1
LSU Fan
Baton Rouge
Member since Apr 2010
3337 posts

re: Should we use a mortgage broker?


GeauxBlonde is my fiancé. Thanks for the input guys. We need to look for another broker to shop against the one that the builder suggested.

Good information about credit inquiries. I was curious if it would be a large detriment to have multiple sources put in inquiries. Very informative.

What is typical as far as closing costs are concerned with a broker? I saw the two options listed above. Does one situation seem more likely for a first time home buyer?






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guttata
LSU Fan
prairieville
Member since Feb 2006
20116 posts

re: Should we use a mortgage broker?


Seems like that depends on how long you plan on staying in the house. If you plan on staying a while, I'd pay the closing costs myself and get the lower rate. If you only plan on being there say 3 or 4 yrs, I'd probably save the closing costs and just pay the higher rate. I had my mtg broker just run the numbers both ways. In my case it was better for me to pay closing and get the lower rate. Just don't get fooled into thinking a no closing deal is that great. You could have gotten a better rate if you just pay the fees up front.





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rsande2
LSU Fan
Member since Jan 2006
3423 posts

re: Should we use a mortgage broker?


quote:

Should we use a mortgage broker?


I am currently doing a refi and the broker killed Chase and other banks on the rate. This was not the case several years back so definitely shop around. I did find the closing costs to be lower with the broker as well.






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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4768 posts

re: Should we use a mortgage broker?


quote:

What is typical as far as closing costs are concerned with a broker? I saw the two options listed above. Does one situation seem more likely for a first time home buyer?


FHA or conventional loan?






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