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How can I trust my morgage broker?
I am shopping for a Mortgage now. I have found a Morgage Banker who is giving really good rate. My concern is how can i verify this morgage banker i have found is reliable. I was told that they are going to sell my morgage soon too.
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| By
Shiva |
Posted on
02/21/07 Total Answers
5 |
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| Answers- |
| try www.lendingtree.com i know several pepole it has worked great for including myself as far as your current mortgage broker i sugesst you try checking with your local banking commission to see what they may be able to do for you as they have listings of problems with local mortgage brokers and any reports of problems with them good luck |
| Answer by :
Mark R On Date
2007-02-21 06:54:20 |
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| I work for a Mortgage broker in Wasington DC plus I do loans in 7 states, so I am speaking from knowledge.
Most lenders will sell the loan to an investor. (it's a strange world that mortgages are in . . . .) Unless you go to a lender like Countrywide, Washington Mutual, GMAC, chances are, the lender is sold to invester.
Here are ways to know the person you are working with is depenedable. Depending on the state you are in, you can look up the licence of the person you are working with to see if there have been any documented problems.
Another thing is simpel, how often is the person you are talking to keeping you in the loop? Granted, the person that is helping you could be busy, but if they call or e-mail you at least once a day, that is a good sign.
One thing you can ask is how much commission is the person you are working with is making. There are two ways we make money doing loans. The first is based on the rate. A lender will charge the rate based on conditions of the loans AND how much commission the loan officer will want to make. Conditions like credit, loan size, down payment all play a role to determine the rate, then the lender will tell the loan officer how much the rate will be if they don't get paid. (For examble, the lender says "6.5% pays the loan officer nothiner, 6.5% pays the loan officer 1%, 7.000 pays the loan officer 2% . . .).
The loan officer also gets paid by charging "points" in the closing cost. 1 point = 1% of the loan size.
Now, the loan officer does need to get paid, he/she is not going to do the loan for free. A fair amount to make is 1% to 2% commission. If the loan officer is charging 2 points, he/she should not be making anything from the lender and visa verca.
If you have any questions, please feel free to e-mail and I can give advice on how to keep them in line. :) |
| Answer by :
William A On Date
2007-02-21 07:05:51 |
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| You can not believe everything they tell you over the phone. Because the rate does not stay at one place it moves every minute and every second. The mortgage broker that you spoke to may have given you the best rate out there but there is a catch. When he/she reviews all your documents, the rate will defit. change. Most likely it will go up. If you have a doubt about this certain mortgage broker, I suggest you to shop more and find someone that you can at least depend on. Q'ting you the best rate over the phone doesn't mean anything. You have to think about if there is any PPP involved, program information if even you need to becareful if the loan program is negative amotization. If your loan will sold to an investor than that means you are most likely to go with the BCD lender at first. Please look into PPP and loan program first.
Good luck with finding a reliable mortgage broker for your needs. |
| Answer by :
Victoria78 On Date
2007-02-21 07:23:31 |
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| Unless you or someone you know can vouch for them personally, there is no way to tell. The key is to always have a back-up plan in case he changes your rates at the last moment. That is something that alot of shady brokers will do. They get you all set up and ready to go, and then jack up rate at the last min.
Now, if you have a couple of estimates ready to go from different brokers.. you can always tell the guy to stick it if he tried to change the rate. Tell him you have another broker ready to give you a proper rate. There is a very good chance he may revert back to his previous offer if you do that. |
| Answer by :
iceman On Date
2007-02-21 07:25:21 |
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| A mortgage lender selling your loan to a LOAN SERVICER is a common practice among almost all lenders. If this is a major concern for you your best chance would be a credit union or a local bank. but even then this isnt absolute. What is for sure is that your original loan terms cannot change for lender to lender.
If your the type that likes to set up automatic payment then this could be a problem for you. Customer Service of your loan could change too. One lender may have you talking to India for your mortgage needs and another could give you the best service. Email me on where you loan is going originally and i can give you an idea of what service your going to get.
As for getting a good rate that is hard to determine. It all depends on your loan senario. Are you the perfect borrower, Do you detest all possible fee's in this world, Are you disclosing income, are you borrowing against all the value in your home? The best rule of thumb is to get a compettive quote at a local credit union. Credit Unions are non profit organizations. They won't give it away for free, but there are times they can blow competitors out of the water. If you have a tougher loan where you don't qualify, it may be harder to judge.
another way to determine this is the general 3$-5% rule. take ALL your fee's, (title/orignation/3rd party ect ect) If this is with in 3%-5% of your loan amount you are about right. Maybe not the best deal in the world, but your not getting ripped off. (those of you paying no fee's, fyi they are stilling getting 1%-3% from rebate)
If you are very concerned you can email me your senario. While I am a broker, this isnt about sales. I can give you a non interest 3rd view of this if you want. i won't sell you anything. |
| Answer by :
DamnitJerry On Date
2007-02-21 09:30:09 |
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