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We're working with the broker that our realtor is recommending because we need to close with a 203k in a short period of time, and our realtor is assured this guy can pull it off. However... a few times I've called, needing answers to things immediately so we can make decisions and move forward. I've had to call two or three times in order to get a hold of him within a 24 hr period. He told my spouse on Thursday to expect some numbers from him on Friday that we really need to see so we can, again, make more decisions and get this process moving. We received nothing on Friday, so now instead of being able to spend the weekend discussing/debating/deciding amongst ourselves, we're going to have to rush and seriously inconvenience ourselves trying to do this during a really busy crunch time for us. (For instance, I can't get bids for work that we want done until we have the numbers telling us whether it's going to be worth it not to do the rehab loan at all because we might be able to avoid a jumbo rate if we don't. We can't get the appraisal until we get the work bids. Etc.)
At first he was extremely responsive... now he's coming off as a 3-margarita lunch type of guy who isn't responding because maybe he thinks we're on the hook or something. I realize we're not his only clients, but it's not like he's doing us a favor or anything. He is getting paid for his services. Are we expecting too much?
We have another lender waiting in the wings, but we don't expect them (a major bank) to be as competitive in rates and time-frame, and I'm not quite clear of what the ramifications will be on our credit to start our lender search over.
There is almost no reason to expect a bank's retail rates are any less competitive than those available from a mortgage broker. A 203K is a bit of hassle but I've used it and it can be a terrific way to get a place needing repairs turned around with minimal out-of-pocket.
If you have given the broker all the info he needs he is then at the mercy of his loan sources -- really nothing more he can do. Now if he has not worked with lenders that do the 203K underwriting MAYBE he has not given THEM the needed info...
If you have given the broker all the info he needs he is then at the mercy of his loan sources -- really nothing more he can do. Now if he has not worked with lenders that do the 203K underwriting MAYBE he has not given THEM the needed info...
Again, this isn't even about getting this to an underwriter at this point. We haven't even been presented with options on a loan to go with; which he promised to deliver on Friday and failed to do. We don't even have a clue which rates we're dealing with on either side.
And whether this is typical or not, I don't know - but when I shopped around for rates and pre-approval letters in May, every major bank's rates and options were dismally un-competitive compared to the products I found via UMBs I worked with.
The way it's supposed to work is that all of their fees are stated in advance.
There aren't any hidden or ridiculous yield-spread fees in the loan paperwork that go to pay the broker. Now bs fees that benefit the lender are still a different story, but anyway... kind of a mortgage broker version of CarMax. No-to-minimal haggle.
Is there any reason, ANY at all, why a broker should be rude and snide to an applicant (read: customer)?... My loan isn't that big, but I provided copious documentation in a very short timeframe, and this guy is always snarky/deliberately uncommunicative--even after I called him on it.
Is there any reason, ANY at all, why a broker should be rude and snide to an applicant (read: customer)?... My loan isn't that big, but I provided copious documentation in a very short timeframe, and this guy is always snarky/deliberately uncommunicative--even after I called him on it.
Some people are just jerks. There is no reason regardless of loan amount or situation (credit, income, assets) to be rude to a client. If the borrower does not qualify or if the revenue is too small for what the broker demands (some lenders do set a minimum loan amount) then they can simply tell the client this and advise them to look somewhere else.
If you called them on it and they continue, you have options... walk away and find someone that treats you with respect.
If your mortgage broker is anything like ours was, you'll be eventually seeing them in small claims court. Your guy sounds like ours- really smiley and helpful and attentive until my husband would question her about some additional fee or some other loan type that they had agreed upon in the first place. My husband had been reluctant as the time drew nearer to close since it was this broker that had done all the initial legwork.
My opinion is that it's a good thing that you have someone else waiting in the wings- keep asking questions from this broker and look over carefully what you are signing and what you had agreed upon. I've just read recently that it's far less expensive in the long run to go with a bank- far less shady and in the end, less costly too. I don't know where the truth lies though.
BTW, the night that my husband was to sign the papers on our house and finalize the deal, the notary came by and lo and behold- new, undisclosed fees and extras that my husband hadn't agreed to just the day before. Pure bait and switch. If you feel like this is what is going on, then go with the bank (I know it's a pain to start over at this stage, though!).
A lot of these guys have been getting away with this sort of deceptive practice for so long that they don't really know how to honest anymore- Beware.
First mistake: dealing with a mortgage broker. Go with the bank directly. Most likely, those are the "real" rates and you will get far less runaround.
Just a note: most major banks are pulling away from even accepting broker applications. That could easily be the problem, here. Your broker is having a very difficult time finding a lender for you. If you have someone in the wings, go with them and go on with your life. Your broker could be coming up empty trying to fulfill the promises that he thought that he could make.
Our broker told us she would call when she thought we should lock in our rate. She didn't. We found out the day after in a phone call when she bragged she had locked in our rate the day before at 5.125%. Several days later, we called her to discuss buying down the rate an additional 2 points on top of the seller's agreement to pay 1 discount point. She announced the 5.125% ALREADY INCLUDED the seller discount point! That means she locked at a HIGHER rate than 5.125%, but didn't tell us. That isn't right. And now she always seems too busy to explain our loan when we try to make an appointment. We did discover our lock is only good for 30 days (expires on the day escrow is "supposed" to close). She says we can get a 5-day extension for 2% of the loan amount ($3,000). What a RIPOFF! We are looking into a family member stepping in and doing an all-cash deal. Leave this arrogant jerk in the dust...
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Mortgage broker expectations
