why use a mortgage broker?

[HiJack]

What are the advantages to using a mortgage broker to find you a loan? Or more importantly what services

do they provide that I would otherwise have to do myself if I sought out a loan on my own?

[florida man]

hi jack

any mortgage broker should be able to secure a loan much cheaper than any retail outfit hands down. They also do all the work for you , and their fee should be included in the closing costs. The only trick should be to find a RESPECTABLE one who will work for YOU. There are lots of us around.

You can try to negotiate a loan directly from a bank yourself, but you are playing a tricky game.

You can also try to sell your house yourself for cheaper, Saving tons on a realtor .....but where would u list it? FSBO doesnt have nowhere near the listings as the mls, and BUYERS DONT PAY FOR THE REALTOR SO THEY ARENT GOING TO LOOK THERE.

They will look where THE MOST HOUSES ARE. The MLS . Someone might think your house is their dream home, but will be looking on the MLS for it -not your small corner of some FSBO.


You can also defend yourself in court. You would save HUGE on attorney fees, but may have to spend 30 years in jail because you had NO IDEA how to defend yourself vs a trained attorney. Most would agree they would rather spend the money to get a lawyer to save their butt on whatever charges they are facing.

I have had a whole pile of homeowners who thought they could 'negotiate their refiance /purchase' themselves. They shop around and around and end up confused, frustrated, and left trusting the bank that sweet talked to them the best. Why? They thought they could match wits with banking professionals who are TRAINED to sell them a loan.

A Mortgage Broker is someone who is ALSO trained to go to bat FOR YOU.

The vast majority of loans are now done thru brokers, kind of like an athlete or actor has an 'agent' to negotiate contracts.

[carlo@CreditReportAtlas]

Originally Posted by florida man

hi jack

any mortgage broker should be able to secure a loan much cheaper than any retail outfit hands down. They also do all the work for you , and their fee should be included in the closing costs. The only trick should be to find a RESPECTABLE one who will work for YOU. There are lots of us around.

You can try to negotiate a loan directly from a bank yourself, but you are playing a tricky game.

You can also try to sell your house yourself for cheaper, Saving tons on a realtor .....but where would u list it? FSBO doesnt have nowhere near the listings as the mls, and BUYERS DONT PAY FOR THE REALTOR SO THEY ARENT GOING TO LOOK THERE.

They will look where THE MOST HOUSES ARE. The MLS . Someone might think your house is their dream home, but will be looking on the MLS for it -not your small corner of some FSBO.


You can also defend yourself in court. You would save HUGE on attorney fees, but may have to spend 30 years in jail because you had NO IDEA how to defend yourself vs a trained attorney. Most would agree they would rather spend the money to get a lawyer to save their butt on whatever charges they are facing.

I have had a whole pile of homeowners who thought they could 'negotiate their refiance /purchase' themselves. They shop around and around and end up confused, frustrated, and left trusting the bank that sweet talked to them the best. Why? They thought they could match wits with banking professionals who are TRAINED to sell them a loan.

A Mortgage Broker is someone who is ALSO trained to go to bat FOR YOU.

The vast majority of loans are now done thru brokers, kind of like an athlete or actor has an 'agent' to negotiate contracts.

Hello Tom! How have you been? It's been a while since I saw you post something on MBL. Anyhow, Tom is right regarding on selling your home w/out using a realtor. My dad sold his house to my brother and he had the worst wild goose chase and said he'd never do it again. He had to go through a lot of loopholes and he had no idea what he was doing. My dad said next time he'd rather have a trained Real Estate agent handle all the paperwork. He said it was a nightmare and it took him 3 months to get all required docs and of course... a lot of stress taking time off work.

[Greg]

any mortgage broker should be able to secure a loan much cheaper than any retail outfit hands down.

I am a retail banker that can broker and our in-house rates are and have consistently been beating Countrywide, Flagstar, Interfirst, Chase, Wells Fargo, and I am sure a lot more. I track them because I can broker too.

But, in general he is correct. Retail outfits I have networked with charge a slightly higher rate than their wholesale side to offset the costs for having an office and paying benefits.

But, retail outfits also tend to charge lower fees so if the retail outfit is .125-.25% higher than the wholesale broker the APR may be lower with the retail lender due to the lower closing costs.

In summary I would deal with a broker over a banker due to the lending choices you have with them. But, if it is a Banker that can Broker then that is pretty unsurpassable. Unless you are Florida Man.

I would also suggest investing into an MBL banner for your web design.

[brendo927]

early next year Accredited is gettin some great Alt-A products that I can't wait to sell. We will have rates to be competitive with all conforming banks. I love to close 6.0 fixed rates with low points. I get paid on volume not on fees .

[florida man]

guys

its good to be back. we just had our best months ever in sept oct nov, so i had no time to post at all.

Greg , u are right. I am not talking about a correspondent hawking direct to the secondary market. I am talking about a brick and mortar bank that the homeowner thinks of when getting a loan.

we all know the usual suspects:

chase, countrywide, wells fargo, and a host of credit unions......

these people do high retail volume and we know we can beat their prices.