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Old 11-12-2013, 09:33 AM
 
Location: MA
155 posts, read 262,082 times
Reputation: 255

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I apologize in advance if these are stupid questions but I am trying to understand the process and be an educated consumer.

We are just beginning the steps of getting pre-approved. It's been over 10 years since we've done this and last time my husband handled this part so I have a lot to learn. We have an agent who referred us to a mortgage broker who we hope to meet with this week. I know that we'll need w2's, paystubs, etc. Is there anything else? How will I know if this guy knows what he's doing? (We are a bit gun shy due to our last experience). Do brokers only deal with certain banks? We are really anti-big bank and we'd much prefer to go with a small local bank instead. Do we really even need a broker??

Thanks in advance for any insight. I'm sure I'll have many questions as we go
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Old 11-12-2013, 09:52 AM
 
20 posts, read 15,780 times
Reputation: 24
No, you don't need a broker. Going out to the banks and finding what they would offer is a very reasonable idea. You would go the bank for other loans and a home is no different. We found the bank and rate that we wanted for our home FIRST, then found a broker/agent who was willing to work with what we were pre-approved for. We had a fairly convoluted process since we went with a smaller bank but eventually found an agent who did an awesome job in the rest of the process.
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Old 11-12-2013, 10:42 AM
 
3,322 posts, read 7,267,064 times
Reputation: 4105
Quote:
Originally Posted by Makolly View Post
I apologize in advance if these are stupid questions but I am trying to understand the process and be an educated consumer.

We are just beginning the steps of getting pre-approved. It's been over 10 years since we've done this and last time my husband handled this part so I have a lot to learn. We have an agent who referred us to a mortgage broker who we hope to meet with this week. I know that we'll need w2's, paystubs, etc. Is there anything else? How will I know if this guy knows what he's doing? (We are a bit gun shy due to our last experience). Do brokers only deal with certain banks? We are really anti-big bank and we'd much prefer to go with a small local bank instead. Do we really even need a broker??

Thanks in advance for any insight. I'm sure I'll have many questions as we go
People tend to use the term "mortgage broker" out of ignorance, not realizing that there are both brokers and bankers. Most times it comes down to the human being you are dealing with more than the company.

You will need paystubs, W2s, 2 years tax returns, 2 months bank statements, DL & SS cards, and other items when you go to contract.

Ask him/her for a resume. Have a conversation about anything but your situation. Can he/she form a sentence? Listen? Spell? Break off the meeting/call, and ask them to call you back at a specific time. If they do, that's a good sign.

Ask what the span of control of their processor is, ie., how many LOs does he/she service.

If your first question is "what is your rate" then you are doomed. There's a lot more to it than that.
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Old 11-12-2013, 02:16 PM
 
3,313 posts, read 4,101,613 times
Reputation: 1829
Quote:
Originally Posted by Makolly View Post
I apologize in advance if these are stupid questions but I am trying to understand the process and be an educated consumer.

We are just beginning the steps of getting pre-approved. It's been over 10 years since we've done this and last time my husband handled this part so I have a lot to learn. We have an agent who referred us to a mortgage broker who we hope to meet with this week. I know that we'll need w2's, paystubs, etc. Is there anything else? How will I know if this guy knows what he's doing? (We are a bit gun shy due to our last experience). Do brokers only deal with certain banks? We are really anti-big bank and we'd much prefer to go with a small local bank instead. Do we really even need a broker??

Thanks in advance for any insight. I'm sure I'll have many questions as we go
Please, don't use the person your agent referred you to! It's not in your best interest: 1) your agent will know your possibilities (money wise) and will be considering it and 2) your agent will get some $$ from that guy.
The best thing to do is to go to your bank and ask for preapproval. If you have a checking account there it will simplify a lot of things for you. Also check local credit unions.
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Old 11-12-2013, 05:01 PM
 
3,322 posts, read 7,267,064 times
Reputation: 4105
Quote:
Originally Posted by EngGirl View Post
Please, don't use the person your agent referred you to! It's not in your best interest: 1) your agent will know your possibilities (money wise) and will be considering it and 2) your agent will get some $$ from that guy.
The best thing to do is to go to your bank and ask for preapproval. If you have a checking account there it will simplify a lot of things for you. Also check local credit unions.
How do you know this? What if they have a great relationship and they both perform exceedingly well?

Local bank may be subbing loans out to a chop shop like Quicken. Give the referred person a chance, at least. Realtors don't often refer lousy mortgage people.
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Old 11-12-2013, 07:00 PM
 
Location: Plano, Texas
1,676 posts, read 6,338,286 times
Reputation: 684
I think the best thing you could do is ask your friends, neighbors, family members, etc...who they have used to get a mortgage that offered excellent service. Going to the bank, you will most likely deal with order taker that doesn't have much incentive to get the loan done quickly. Buying a home is the biggest investment you will ever make. Find a highly recommended professional to help you with the process.
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Old 11-12-2013, 08:03 PM
 
Location: MID ATLANTIC
7,604 posts, read 17,652,971 times
Reputation: 8099
Quote:
Originally Posted by EngGirl View Post
Please, don't use the person your agent referred you to! It's not in your best interest: 1) your agent will know your possibilities (money wise) and will be considering it and 2) your agent will get some $$ from that guy.
The best thing to do is to go to your bank and ask for preapproval. If you have a checking account there it will simplify a lot of things for you. Also check local credit unions.
I find your post offensive. It's against the law to offer or accept any form of kickback for business referrals. Agents in my community recommend me because they know I understand the job I do reflects upon them. I also know if I screw up, that entire real estate office will be talking about it and my referrals will see a drop in number. My agents carry a very big stick.....more so with me, than the guy 4 states away or someone in a call center in some unknown location. I work for a small community bank, where we do our own processing, underwriting, closing and funding - all under one roof.
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Old 11-13-2013, 10:39 AM
 
3,313 posts, read 4,101,613 times
Reputation: 1829
Quote:
Originally Posted by Pfhtex View Post
How do you know this? What if they have a great relationship and they both perform exceedingly well?

Local bank may be subbing loans out to a chop shop like Quicken. Give the referred person a chance, at least. Realtors don't often refer lousy mortgage people.
The difference between that guy and mortgage underwriter in your bank is that the first one will get paid only if you close with him, and the second person is on paycheck and have no hidden agenda to push you...

How I know about some $$? It calls referral fee and I've been there, so I know exactly what I am talking about.
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Old 11-13-2013, 11:10 AM
 
8 posts, read 22,482 times
Reputation: 12
I'd advise that you get your loan approved thru manual underwriting prior to even looking for a home, no matter where you go. Loan officers will tell you anything, and going thru their automatic system may get you over a first hurdle, but its the actual manual underwriting where all the problems start to occur and where you loan can be held up or denied.

I'm trying a small community bank - it's not working out very well for us. We were given promises but all the issues we brought up in the beginning have been stumbling blocks to getting a loan.

As for documentation, you'll need a lot more than you'll think. The basics, pay stubs, tax returns, bank statements, will open the floodgates to further documentation. I've provided the lender with over 200 pieces of paper, including letters of explanation for credit dings 8 years ago, yes, 8 years ago. The loan processor will send you a letter, then many more, of all the back-up documentation. If you recently got credit, made a big deposit, really any financial changes, be prepared to back it all up.

Oh, and if you have credit issues, be sure you have no DISPUTES on your credit file - that will definitely hang you up.

We were given the go ahead by our lender to look for, and find, a home. That is now seriously in jeopardy. And we are out money and time, as are the sellers and our realtor.

I wish it were a happier process, but it's very emotionally and physically draining. Don't start packing boxes anytime soon.
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Old 11-13-2013, 11:12 AM
 
3,322 posts, read 7,267,064 times
Reputation: 4105
Quote:
Originally Posted by EngGirl View Post
The difference between that guy and mortgage underwriter in your bank is that the first one will get paid only if you close with him, and the second person is on paycheck and have no hidden agenda to push you...

How I know about some $$? It calls referral fee and I've been there, so I know exactly what I am talking about.
No.

You are assuming a collusive relationship that involves illegal monies being paid in return for referrals. This is not common, inasmuch as a new buyer needs to put it on their list of things to consider.

If you like and trust your realtor, chances are that if they refer you to a lender, it's because that lender/LO does a good job. Period.

So you're saying that, by nature, only salaried shlubs - - who have ZERO motivation to get their asses in gear - are worth working with??
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