In need of good advice - mortgage broker + areas - first time home buyer (Atlanta: sales)

[bobbyjohnson]

I've read some many of the postings but haven't read anything that would particularly apply to me....so I figured i'd reach out for some good advice...hope you can help...appreciate any feedback...

Before I start asking questions - let me lay out the facts:
-I have excellent credit (750+)
-Strong employment history with current employer
-First Time Home buyer that qualifies for FHA program
-Live just inside the northern perimeter, looking to move further in town
-Mid 20's - so looking for more of a starter home
-No kids

What I'm looking for in a home:
-3 BR/2BA
-175k - max
-likely to live there for 3-5 yrs

Where I'm looking:
-Grant Park
-Kirkwood
-East Atlanta

Now that we've laid that out, let's get to the questions:

1. Does anyone know of a reliable, good mortgage broker? Do you think one is necessary given my credit score and ability to get competitive rates at some of the bigger banks (I've already sat with Bank of America lending agent and been quoted a good rate)?

2. Given the current market, is it still best practice to sign an exclusive buyer's broker agreement?

3. In terms of areas, my first choice is Grant Park and I've heard a lot about the revitilization of the area, but is crime still bad in the area (read numerous older posts about it - realize 'bad' is relative but after living in Harlem, NY for yrs - I can handle a bit of crime - more concerned about personal safety)? How are the areas just south (North High Point/South Peoplestown) and east (Ormewood Park) of Grant Park? and Last, how would you compare Grant Park to Kirkwood, East Atlanta, or even Downtown Decatur?

Answers to any and/or all of my questions would be much appreciated. Thx.

[northatlbroker]

Let's get to the answers:

1) I would definitely contact a mortgage broker and compare their rates AND service to the bank. You're good credit score simple means you will have lots of loan options. Bank usually don't have a wide portfolio of loans to offer and I find their costs (not rates) to be higher.

You have to understand that it is the total cost of the loan that is important not just the rate. I can get you a 4.0% rate but if it costs you 2%-3% in points, why do it?

In my opinion as an agent, banks are good at being banks. As you can see from the mess we're in, they're not really suited to do mortgages.

Plus, it can't hurt you to compare.

2) You need an agent. I know this might sound self serving but it's not. Here's why. You're a first time home buyer. You've never done this before. I don't care if you're a top selling sales person who has negotiated million dollar contracts with foreign governments. You don't know the customs and practices of purchasing real estate. For example: do you know how much earnest money you should offer; do you know how to write in contingencies into the contract that will protect you but not turn off the seller; do you know how to handle any objections in the due diligence period, etc.

Why sign an exclusive agreement? First, it's the law. In order to be represented by an agent AS A CLIENT, you have to sign a Buyer's Broker Agreement. An agent can take you around and even do all of the work for you without the agreement BUT they are not your agent as you have not hired them. All they have to d is be honest and ethical but they don't have to look out for your best interests. By engaging them with the Agreement, you become a client and the nature of the relationship changes as defined by the law.

Futhermore, you want an exclusive agreement because you both need to be committed to each oother. As an agent, I won't work with anyone who doesn't sign an agreement. Why? Because I will put my time and energy and effort into helping them find a home. This takes hours of my time and away from other clients and family. Then I find out that the buyer saw a house with a friend and decided to make an offer without me. Trust me this has happened many times. Once burned, twice shy. If you want professional advice, hire a professional.

AND, it will cost you NOTHING! All homes listed with a broker have already agreed to pay a commission to the buyer's broker. You're getting your representation paid for whether you use it or not. It's ridiculous not have someone. But, if you don't have an agent, that commission will be paid to the seller's agent. You will not be able to reduce the price by the difference - 99.9% of the time.

3) I don't work in the areas you are considering. I recommend you get an agent who knows your area and meet with them. Don't jump in the car and start looking. Have a conversation and make sure they are experienced and can help you. In my opinion, if they don't ask you to sign an agreement that's a sign of an "unemployed" agent. Even in tough times like these, we need to maintain professionalism and good business practices.

If you need a referral to someone, let me know.

Good luck and I hoped this helped.

[moneill]

I have an excellent mortgage broker. He is with SunTrust and is one of the nicest and brightest people I have ever met. Truly a good people person. He will go above and beyond to make sure your get the best service

[ramblinwreck17]

Originally Posted by moneill

I have an excellent mortgage broker. He is with SunTrust and is one of the nicest and brightest people I have ever met. Truly a good people person. He will go above and beyond to make sure your get the best service

If he works for SunTrust then he is not a mortgage broker- he would be a retail loan officer. Mortgage brokers work with multiple lenders so they can have access to the best rates at any given time.

[JennySells]

Mortgage Brokers do not always have the best rates, and many times there are hidden fees. Watch Out. My recommendation is go with a Direct Lender, going thru a middle man/person can be frustrating. Just my opinion.

[ramblinwreck17]

Originally Posted by JennySells

Mortgage Brokers do not always have the best rates, and many times there are hidden fees. Watch Out. My recommendation is go with a Direct Lender, going thru a middle man/person can be frustrating. Just my opinion.

No doubt there are bad mortgage brokers but a good mortgage broker is better than a retail LO.

#1 Good mortgage broker
#2 Retail
#3 Bad mortgage broker

[bobbyjohnson]

Thanks for the replies - if you have a Mortgage broker referral - please PM me.

NorthAtl - Thanks for the reply. It was very helpful. To clarify - I was definitely going to use an agent but more concerned about the exclusivity of an agreement and understand that there are some non-exclusive opportunities available. Your reasoning satisfied my concerns though - I will just have to do some agent shopping. I would definitely appreciate a referral to someone who works in the Grant Park/East Atlanta area.

Open to other opinions but I think everything NorthAtl said was logical. Still looking for help with an answer to the following question:

3. In terms of areas, my first choice is Grant Park and I've heard a lot about the revitilization of the area, but is crime still bad in the area (read numerous older posts about it - realize 'bad' is relative but after living in Harlem, NY for yrs - I can handle a bit of crime - more concerned about personal safety)? How are the areas just south (North High Point/South Peoplestown) and east (Ormewood Park) of Grant Park? and Last, how would you compare Grant Park to Kirkwood, East Atlanta, or even Downtown Decatur?