mortgage broker or not?

[peggyfromwastate]

We are talking about possibly looking into buying a house now that it's a buyer's market. There are a lot of details with this, but I was just wondering if mortgage brokers are better than just calling the bank?

We used a broker for our first mortgage- b/c we were totally stressed and our lender never "got around" to our application. But there seem to be a lot of fees with a broker? Or are the fees about the same?

[SuzySunshine]

Re: mortgage broker or not?

We won't use a broker with our next one. We'll go to our bank first and possibly another bank or two in town. Of course we belong to a credit union so they seem to have better deals.

In my experience your mortgage is going to get sold at some point so it really doesn't matter who gives it to you initially and if you can save some money (fees) in the process that is the way to go IMO.

Re: mortgage broker or not?

I've used a broker twice and both times the mortgages were sold to Wells Fargo. I knew it would be sold and I have no complaints. A lot of the fees are standard and don't seem to vary from place to place but some are not. I would call a few places and get good faith estimates to compare.

We got a better rate on our mortgage than when I called Wells Fargo directly, even though we were already customers. :huh: Definitely worth it to call around, IMO.

Some people here have done physician loan programs so maybe they can pipe in. Is there anything you can get through the military?

[Stella]

Re: mortgage broker or not?

We are talking about possibly looking into buying a house now that it's a buyer's market. There are a lot of details with this, but I was just wondering if mortgage brokers are better than just calling the bank?

We used a broker for our first mortgage- b/c we were totally stressed and our lender never "got around" to our application. But there seem to be a lot of fees with a broker? Or are the fees about the same?

There's a big difference between a broker and a lender - go to a lender. I used to work for Countrywide and they can do some really awesome loans. Federal banks are usually pretty good too.

[Stella]

Re: mortgage broker or not?

Where are yall going to move? I just realized you're in MD. I'll PM you a name and she might be able to help - or at least give you some advice.

Re: mortgage broker or not?

Stella -- what is the difference between a broker and a lender?

Our mortgage place funded the loan (I think?) but then sold it right away.

[peggyfromwastate]

Re: mortgage broker or not?

I was thinking that a broker will charge a "finder's fee" type of a thing, and they basically will get the loan from the bank? The banks charge loan fees, too, but our broker for our current home has all sorts of little fees tacked on there. They add up to almost $1000, so I'm not sure if that is normal. These fees are:

Tax service fee... $70
Flood Certification....$16
Underwriting Fee... $100
Processing Fee.... $385
Application fee... $355

From what I remember of the bank offers, they were for the application fee and didn't mention any of these other ones. But that doesn't mean they aren't there...

Re: mortgage broker or not?

When we did MILs loan, it was a smaller loan through the local bank and we saved a bunch on some of the fees. I don't know the correct term for it but I don't think it was part of a federal mortgage pool or something -- couldn't be sold...I don't know. That did save on some of the fees.

I think I got a good faith estimate -- basically a filled out HUD form -- from a couple of places. At least I think I did. It is all blurring together. I was looking for a re-finance to remodel our house and then a loan for a new purchase and I got a bunch of stuff and compared it.

[MDPhDWife]

Re: mortgage broker or not?

The best way to go about it is to get several good faith estimates. Lenders & Brokers all have different fees and the only way to know what your bottom line cost will be is by the good faith estimate. I also would recommend mortagebyinternet.com. My sister and my best friend used them and were very pleased.

[peggyfromwastate]

Re: mortgage broker or not?

Is motgagebyinternet.com a lot different from lending tree? I am assuming that Lending tree would be a bad idea since they obviously put sooo much of their resources into advertisement. I get so annoyed at lending tree commercials....