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kspags
LIF Adult
Member since 6/08 1228 total posts
Name:
Kelly
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mortgage broker vs. bank/credit union
What does everyone think? I have been working with a broker for a few months now b/c we had been out-bid on a house in May. Now we are in contract and I just locked in at 6.5 and got our good faith estimate for closing costs. However, a guy that comes into the restaurant where I work on Fridays said he could beat/match and give me 6.25. How is that possible?! I think we are going to check out our credit unions today just to cross reference. I just want to make sure I am making the best financial decision. I also don't want to screw this guy that has been helping me considering my title search, appraisal, and survey were already completed. But money is money!!
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Posted 7/26/08 10:10 AM  |
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CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
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Re: mortgage broker vs. bank/credit union
We were originally going with a mortgage broker too, but when we got the good faith estimate we couldn't believe how high the fees were. We decided to check out two banks and ended up going with BOA. They got us a lower interest rate and we didn't pay any fees.
It's definitely good to shop around. GL!
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| Posted 7/26/08 10:41 AM |
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qtdimps231
LIF Toddler
Member since 11/07 477 total posts
Name:
Diana
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Re: mortgage broker vs. bank/credit union
go back to ur original broker and tell him. maybe he'll match it. he's going to want the deal.
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| Posted 7/26/08 12:22 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: mortgage broker vs. bank/credit union
make sure that rate doesn't mean you have to buy it down!
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| Posted 7/26/08 12:50 PM |
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kspags
LIF Adult
Member since 6/08 1228 total posts
Name:
Kelly
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Re: mortgage broker vs. bank/credit union
Thanks! I'm definitely going to speak to him and tell him what the other broker mentioned. I did go to the credit unions today and the rates were the same.
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| Posted 7/26/08 4:40 PM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: mortgage broker vs. bank/credit union
We found that our credit union had a better rate, and the fees were much less. We saved over $5,000 by using the bank as opposed to the broker we were speaking with.
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| Posted 7/26/08 4:59 PM |
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donegal419
St. Gerard, pray for us.
Member since 7/07 7650 total posts
Name:
K
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Re: mortgage broker vs. bank/credit union
Posted by kspags
Thanks! I'm definitely going to speak to him and tell him what the other broker mentioned. I did go to the credit unions today and the rates were the same.
if the rates are the same with the credit union, you might want to consider that as their closing costs are usually MUCH lower than the banks.
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| Posted 7/26/08 8:32 PM |
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JennJay41
LIF Toddler
Member since 3/08 431 total posts
Name:
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Re: mortgage broker vs. bank/credit union
IDK, I would not go with a broker. I feel like because the market is not too good, many of them have their jobs on the line and aren't doing so well, therefore will try anything to get customers. My sister had gone through a broker last year and at the closing, he try to s(rew her and her husband. When they walked out of the closing, they still didn't get what they had originally agreed on. I would go with a reputable bank/credit union. Also, so many mortgage companies are shutting down, so you don't know who you will be dealing with in the future.
As far as the rate, from what I know, the rate depends on the day and what the national rate it. One day we called it was 6.25, the very next day it was 6.5 and about a week later it was 5.85... all with the same company.
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| Posted 7/26/08 11:03 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: mortgage broker vs. bank/credit union
I would most definitely use a broker if the interest rate was better and their fees weren't bad.
Brokers have access to wholesale rates that the banks don't advertise to regular customers.
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| Posted 7/27/08 12:49 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: mortgage broker vs. bank/credit union
Posted by JennJay41
IDK, I would not go with a broker. I feel like because the market is not too good, many of them have their jobs on the line and aren't doing so well, therefore will try anything to get customers. My sister had gone through a broker last year and at the closing, he try to s(rew her and her husband. When they walked out of the closing, they still didn't get what they had originally agreed on. I would go with a reputable bank/credit union. Also, so many mortgage companies are shutting down, so you don't know who you will be dealing with in the future.
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any many banks are having the same issues and aren't doing so well either- they only have retail programs that are available thru their bank
not all mortgage brokers are shady
my husband happens to work for a direct lender- and he is one of the most honest in the business- he has actually lost business b/c he is honest all the fees upfront- and then someone who just wants the deal comes along and lies to the client- and they end of getting screwed at the closing table
it's a matter of if it sounds to go to be true- it probably is
as a direct lender my husband company can bank the loan or go wholesale thru one of 86 other banks to get better rates- his job is not on line- and they are not going out of business anytime soon- home mortgages are only a part of what they do
my point is- shop around- just b/c someone works for Citi bank doesn't mean then are better then better then a broker or a direct leader- it just means they work for Citi bank
ETA- the company that sells your loan- it going to put your loan together with other loans and sell them - that's how they make money- so even if you company goes out of business- you just make the check out to someone else- you might end up making the check out to some one else anyway if they sell the loan
Message edited 7/27/2008 9:46:35 AM.
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| Posted 7/27/08 9:42 AM |
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