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Started By
Message
Is this normal for a Realtor?
Posted on 1/16/20 at 3:56 pm
Posted on 1/16/20 at 3:56 pm
Wife and I just got pre approved for a mortgage. 30 year conventional @ 3.875% which I thought was a great rate.
I contacted a realtor today who came highly recommend from friends who says he a finance company they us who can beat that rate.
Do they get some type of kickback for going through particular lenders? I don’t see how they can get us a better rate than that
I contacted a realtor today who came highly recommend from friends who says he a finance company they us who can beat that rate.
Do they get some type of kickback for going through particular lenders? I don’t see how they can get us a better rate than that
13
Posted on 1/16/20 at 4:04 pm to HarveyBanger
quote:
Do they get some type of kickback for going through particular lenders? I don’t see how they can get us a better rate than that
maybe not kickbacks per se, but definitely agents and mortgage brokers steer business to one another. Pretty common. FWIW i got preapp for same rate with Rocket Mtg. Doesn't really hurt you to get their rates - you should be shopping it around. Watch out for the bank fees though. They vary lender to lender, sometimes significantly.
Posted on 1/16/20 at 4:14 pm to HarveyBanger
Yes, that's normal. They usually are getting something for sending business to a specific finance company, title company, insurance broker etc. I wouldn't necessarily call it a kickback. It's not uncommon for businesses to offer incentives for working with their preferred partners.
Find out what they'll give you on a 30 year fixed, then compare the two on fees and APY. It could be that they beat the 3.875% by giving you a 3.825% APR with a higher APY. If they can give you a lower APY for the same or similar fees then it's a better deal IMO.
Find out what they'll give you on a 30 year fixed, then compare the two on fees and APY. It could be that they beat the 3.875% by giving you a 3.825% APR with a higher APY. If they can give you a lower APY for the same or similar fees then it's a better deal IMO.
Posted on 1/16/20 at 5:08 pm to HarveyBanger
Quicken loans/Rocket mortgage has some of the highest points and fees in the industry. That's factual. It's on their website. Scroll to the fine print and check out their "assumptions" when you scroll down to the bottom of their rates page.
This post was edited on 1/16/20 at 5:16 pm
Posted on 1/16/20 at 5:19 pm to HarveyBanger
I just locked in a 30 year conventional at 3.75% with no points. I originally talked with the Mortgage Group at my main bank (also 3.75%), but my agent recommended someone with Union Mortgage who she knows well and they have been great to deal with. Fees were slightly lower, but I didn't get the feel that the guy at my main bank would have been this much help.
Posted on 1/16/20 at 5:29 pm to HarveyBanger
Not abnormal. Realtors all have friends in that type of business. The bankers recommend their clients to the realtors and vice versa, rarely any kickbacks unless you have a serious hustler. More likely the realtor just had another client approved for something better.
Posted on 1/16/20 at 5:43 pm to HarveyBanger
Probably in the same BNI group...
Posted on 1/16/20 at 5:55 pm to HarveyBanger
Never hurts to shop rates.
Posted on 1/16/20 at 6:22 pm to HarveyBanger
Realtors like to use whoever does the fastest financing
Posted on 1/16/20 at 6:27 pm to HarveyBanger
People like to deal with people they know and have had a good experience with.
There are so many shitty lenders and closing attorneys out there.
There are so many shitty lenders and closing attorneys out there.
Posted on 1/16/20 at 8:59 pm to HarveyBanger
Realtor cares about two things much more than your rate:
Speed of processing loan
Ability to bring it to a close/get financing when challenging
It’s something good they can keep in their pocket. I was selling and my buyers financing fell through, my realtor talked to his guy, got them to apply and saved the deal and did it all in 14 days when they’d waited 30 on the prior company
Speed of processing loan
Ability to bring it to a close/get financing when challenging
It’s something good they can keep in their pocket. I was selling and my buyers financing fell through, my realtor talked to his guy, got them to apply and saved the deal and did it all in 14 days when they’d waited 30 on the prior company
Posted on 1/16/20 at 9:01 pm to HarveyBanger
I am a lender and get referrals from realtors all the time. There are no kickbacks and the reason that they refer me business is they know we can be counted on to be done correctly and on time.,
Posted on 1/17/20 at 12:04 am to HarveyBanger
I locked in a 30 yr conventional mortgage about 2 weeks ago buying 0.875 points to get it down to 3.375%. Was also offered 3.625% with 0 points.
$675 lender fees for both options.
I shopped on Lending Tree, then pitched the best offers against each other until I was satisfied.
Helps my wife and I both had credit scores over 800.
$675 lender fees for both options.
I shopped on Lending Tree, then pitched the best offers against each other until I was satisfied.
Helps my wife and I both had credit scores over 800.
Posted on 1/17/20 at 1:30 am to That's BS
quote:
I locked in a 30 yr conventional mortgage about 2 weeks ago buying 0.875 points to get it down to 3.375%. Was also offered 3.625% with 0 points.
$675 lender fees for both options.
I shopped on Lending Tree, then pitched the best offers against each other until I was satisfied.
Helps my wife and I both had credit scores over 800.
Helpful information...will be starting this process soon.Posted on 1/17/20 at 7:51 am to lynxcat
Just be prepared for a lot of phone calls and a lot of emails. 
I did the lending tree search/application daily for a few days. You'll get new offers each day. Then I chose the best of each to actually talk to. Ignored a LOT of phone calls and emails from the other lenders. They finally start dying down after about 7 to 10 days. Don't be scared to let the lenders know you're also checking offers from other lenders.
I did the lending tree search/application daily for a few days. You'll get new offers each day. Then I chose the best of each to actually talk to. Ignored a LOT of phone calls and emails from the other lenders. They finally start dying down after about 7 to 10 days. Don't be scared to let the lenders know you're also checking offers from other lenders. 
Posted on 1/17/20 at 7:59 am to HarveyBanger
The Real Estate Settlement Protection Act (RESPA) has an anti-kickback provision that authorizes criminal and civil penalties for kickbacks in connection with federally insured mortgage transactions.
Posted on 1/17/20 at 8:02 am to That's BS
quote:
Just be prepared for a lot of phone calls and a lot of emails.
You are not kidding..My phone blew up for a good time..I tried to ignore it but ended up answering the calls to turn them down, while at work. They would put the hard sell once they had you on the phone. It was very annoying.
Posted on 1/17/20 at 9:39 am to Athis
Check out a mortgage broker. Mine was able to get me a better rate than I was able to find on the internet. I loved doing business with her and recommended two other people to her. They both loved her too.
Posted on 1/17/20 at 9:52 am to Huey Lewis
quote:
Find out what they'll give you on a 30 year fixed, then compare the two on fees and APY. It could be that they beat the 3.875% by giving you a 3.825% APR with a higher APY. If they can give you a lower APY for the same or similar fees then it's a better deal IMO
I believe you confused the loan’s interest rate vs APR here and threw in APY instead.
APR is simply the actual rate you are paying when you account for the fees associated with a loan.
APY is a marketing trick used by banks on investments, not loans, to show a higher rate of return on the investment. On investments, APY will always be higher than the rate so they use APY to make it seem like it’s a better investment.
APY isn’t really used when comparing mortgages.
Posted on 1/17/20 at 2:58 pm to ellesssuuu
What are the watchouts when choosing a lender? I'll take a simple example, is rate the most important factor?
Using Bank Rate, Texas Trust Loans is offering 3.50% on a 30 year fixed with no fees and no points listed. This is a good quarter point lower that other banks listed.
I'm sure there are considerations outside of rate...so what are the buckets of things to analyze?
Using Bank Rate, Texas Trust Loans is offering 3.50% on a 30 year fixed with no fees and no points listed. This is a good quarter point lower that other banks listed.
I'm sure there are considerations outside of rate...so what are the buckets of things to analyze?
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