Why I am glad I had a mortgage broker. | TigerDroppings.com

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nolatiger711
LSU Fan
Metairie, LA
Member since Oct 2009
111 posts

Why I am glad I had a mortgage broker.


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.







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kennypowers816
LSU Fan
Houston
Member since Jan 2010
1682 posts

re: Why I am glad I had a mortgage broker.


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?






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Cmlsu5618
McNeese State Fan
Destin, FL
Member since Sep 2010
2173 posts

re: Why I am glad I had a mortgage broker.


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.





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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
31913 posts

re: Why I am glad I had a mortgage broker.


Brokers suck..and I'm on the ccim path.





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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
55546 posts

re: Why I am glad I had a mortgage broker.


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.






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Oenophile Brah
USA Fan
The Edge of Sanity
Member since Jan 2013
4586 posts
 Online 

re: Why I am glad I had a mortgage broker.


I'm looking at houses right now too.
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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nolatiger711
LSU Fan
Metairie, LA
Member since Oct 2009
111 posts

re: Why I am glad I had a mortgage broker.


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 at 9:53 pm


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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1911 posts

re: Why I am glad I had a mortgage broker.


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!





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6129 posts

re: Why I am glad I had a mortgage broker.


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,






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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8405 posts
 Online 

re: Why I am glad I had a mortgage broker.


OP: You're seriously buying into an extremely polished sales job. A guy cut his % from 1.5 to 1.425%????


WOWZOMGWHATADEAL!!!!!






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TJG210
LSU Fan
New Orleans
Member since Aug 2006
21588 posts

re: Why I am glad I had a mortgage broker.


What are 15 and 30yrs looking like right now?





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6129 posts

re: Why I am glad I had a mortgage broker.


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.






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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8405 posts
 Online 

re: Why I am glad I had a mortgage broker.


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....







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MikeBRLA
LSU Fan
Baton Rouge
Member since Jun 2005
9138 posts

re: Why I am glad I had a mortgage broker.


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.






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nolatiger711
LSU Fan
Metairie, LA
Member since Oct 2009
111 posts

re: Why I am glad I had a mortgage broker.


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.






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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8405 posts
 Online 

re: Why I am glad I had a mortgage broker.


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...






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nolatiger711
LSU Fan
Metairie, LA
Member since Oct 2009
111 posts

re: Why I am glad I had a mortgage broker.


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.






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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6129 posts

re: Why I am glad I had a mortgage broker.


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






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