So I was asking my Hubby about Mortages

and I learned soemthing nice

if you go to a bank- you are going to pay retail and are limited to the 10 programs they can offer

if you go to a broker- they pay wholesale on the loan b/c they buy in bulk
they can offer you programs with all different banks - up to 5,000
they have personal relationships with bank reps and underwriters that allow them more flexibilty

I am just putting this out there as an FYI- since this seems to be a confusing topic

yup! that's what I recently learned as well!

there are so many options out there, and brokers offer the most. and, can get you the best rates.

it also helps that we have one in the family, like you do

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Posted by Blu-ize

why would anyone use a bank then?

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there are more ways than 1 to do most things. Broker is the middle man and I initially questioned why anyone would go through one. but now I know why.

DH and I have no idea about this stuff and love that we are being “hand held” by a family member. It makes us feel good about it. It’s the largest purchase we’re ever going to make and would much rather deal with him than “John Smith” at the bank who couldn’t care less about us.

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Posted by dleeny

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Posted by Blu-ize

why would anyone use a bank then?

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there are more ways than 1 to do most things. Broker is the middle man and I initially questioned why anyone would go through one. but now I know why.

DH and I have no idea about this stuff and love that we are being “hand held” by a family member. It makes us feel good about it. It’s the largest purchase we’re ever going to make and would much rather deal with him than “John Smith” at the bank who couldn’t care less about us.

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But that doesn't answer the question about why go through a banker then? Wouldn't the banker/loan officer have a good relationship with his/her underwriters and be able to negotiate a deal for you?

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Posted by Blu-ize

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Posted by dleeny

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Posted by Blu-ize

why would anyone use a bank then?

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there are more ways than 1 to do most things. Broker is the middle man and I initially questioned why anyone would go through one. but now I know why.

DH and I have no idea about this stuff and love that we are being “hand held” by a family member. It makes us feel good about it. It’s the largest purchase we’re ever going to make and would much rather deal with him than “John Smith” at the bank who couldn’t care less about us.

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But that doesn't answer the question about why go through a banker then? Wouldn't the banker/loan officer have a good relationship with his/her underwriters and be able to negotiate a deal for you?

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from what I have heard, maybe yes, maybe no. we're not comfortable with those odds.

a broker is going to tell you that you should go through a broker and a banker is going to tell you to go through a bank. There are no odds. It makes sense to me and I have been proven on this that the banker offered the better deals since they are the relationship with the bank. Brokers can take their business anywhere to any bank. Working with one bank/loan officer the bank will always give better deals to it's in house clients (meaning the loan officer) than brokers.

My loan officer at Chase has proven to me many times why it was the best choice. I've gotten the quotes from brokers and was way more impressed with the level of service and money saved by using the bank. All kinds of junk fees are waived, attorney fees are negotiated...etc.. I got a better rate than I would have through a broker without feeling harassed. The banks have an excellent relationship with their loan officers better than any broker can have. The benefit of the broker is mostly that they can shop many banks for you. Also, if you are a high risk client and need to apply for more of an unconventional loan, then a broker is valuable. This is what I have found after doing my research and 3 mortgages later I am happy that I got the best deal for my situation.

[QUO

But that doesn't answer the question about why go through a banker then? Wouldn't the banker/loan officer have a good relationship with his/her underwriters and be able to negotiate a deal for you?

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a bank loan officer is limited to what that bank offers- a mortage broker is not limited - Jake can get a mortgage from chase, citibank wells fargo etc - with out you having to do all the leg work

he pays wholesale- b/c they do volume- he can get a lower rate then a bank b/c banks charge retail- even wells fargo (he used to work for them and found working for a bank limiting)

I am not on here trying to get business for my husband- I just wanted to share what I learned b/c I always said in the past to go to a bank first and I might have been wrong

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Posted by Beth1210

[QUO

But that doesn't answer the question about why go through a banker then? Wouldn't the banker/loan officer have a good relationship with his/her underwriters and be able to negotiate a deal for you?

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a bank loan officer is limited to what that bank offers- a mortage broker is not limited - Jake can get a mortgage from chase, citibank wells fargo etc - with out you having to do all the leg work

he pays wholesale- b/c they do volume- he can get a lower rate then a bank b/c banks charge retail- even wells fargo (he used to work for them and found working for a bank limiting)

I am not on here trying to get business for my husband- I just wanted to share what I learned b/c I always said in the past to go to a bank first and I might have been wrong

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DH and I went to a bank first, 2 of them and were told at 1 that there was no negotiating the rates. whatever it is that day, that's what you get. ok, so WHY would go to you then? that really pissed us off

we still need to get additional info from the other bank (the one who we got pre-approved from). we're still looking into all options.

ETA: the reason why we got pissed at this 1st bank (WAMU) is b/c we have all our accounts there and we are 'preferred'. but apparently not for a mortgage

I have negotiated with my banker and gotten lower rates and junk fees waived. There is always a mark up on the rates no matter where you go.

I bet if you put the good faith estimates side by side-you will see the difference in the fees.

The in house bankers always have the better relationships with their own bank than brokers.

If one bank didn't give you warm and fuzzies, then go to another one. Also, I wouldn't go to a branch. I would deal with the mortgage department and use a recommendation.

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Posted by lulugrrl
money is money..I am only going to go to who can save me the most.

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well said! the lowest bidder wins!

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Posted by dleeny

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Posted by lulugrrl
money is money..I am only going to go to who can save me the most.

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well said! the lowest bidder wins!

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I have to agree with that!

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Posted by Beth1210

if you go to a bank- you are going to pay retail and are limited to the 10 programs they can offer

if you go to a broker- they pay wholesale on the loan b/c they buy in bulk
they can offer you programs with all different banks - up to 5,000
they have personal relationships with bank reps and underwriters that allow them more flexibilty

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I have been saying this for MONTHS.

It makes really no sense to get a mortgage at a bank branch. Unless of course you are the same person that like to pay MSRP on everything you buy.

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Posted by Blu-ize

I have negotiated with my banker and gotten lower rates and junk fees waived. There is always a mark up on the rates no matter where you go.

I bet if you put the good faith estimates side by side-you will see the difference in the fees.

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You will see a difference in fees. But if the difference in fees is only 2k... and you are getting half a point shaved off from going through a broker... you break even after a year or two. Its a no-brainer.

I have dealt with Chase as well. My previous broker beat Chase's rate online. They also waived all the junk fees.

My new broker gave me a rate that was half a point lower than the lowest rate I saw at ANY bank. The service I got was unreal... they got my committment in four days!

If you can't get a lower rate using a broker... then you haven't worked with a good broker.

I have found that there are brokers out there that will just give you the same rates the banks give.

Then there are the REALLY GOOD brokers that give you the killer 'too good to be true' deals.

Maybe you have dealt with the former. My broker put me with Bank of America for my recent house purchase and they treated me like royalty. I don't impress easily... and I was pleasntly surprised.

When I was looking for a mortgage we got the best rate from our bank. We looked into four brokers too - three were yuck and one was pretty good and very nice. But in the end the bank beat the rate.

The yuck ones were high sales pressure, trying to scare me into going with them. Also pretending to be our best friend.

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Posted by cluelessbride



The yuck ones were high sales pressure, trying to scare me into going with them. Also pretending to be our best friend.

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that's b/c there are tons of people in the business that don't belong there- after 9/11 when the rates dropped everyone and there mother got into the business

including my husband- however he was a stockbroker before and has an excellent understanding of the business- and now owns his own office-

he can look at a situation and figure out what is best for the customer- as they all should- and that's why he loves his job- b/c he helps people

but not everyone is like him- makes 80% of his money fixing other peoples bad deals- you would be surprised what unreputable companies get people to agree to -