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Old 09-26-2008, 09:44 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,430,757 times
Reputation: 1008

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1. there are not many banks that write FHA loans
2. Also, ALL lenders have to write it to FHA guidelines otherwise they can't place it with FHA.

This is the silliest post I have seen in a long while.

Quote:
Originally Posted by LJ Charlotte View Post
For a gov't deal like FHA, you may want to check with a banker instead of a broker. A broker will have to send the loan to an outside lender and in many cases the outside lender will not underwrite the loan straight to HUD guidelines. It is not fair to good mortgage brokers, but it is just the way it is.
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Old 09-26-2008, 09:51 AM
 
Location: Charlotte
52 posts, read 120,131 times
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so renriq, youre telling me that if you broker your loan to an outside lender (because by your posts on here i assume you are a mortgage broker), that outside lender never adds their own conditions to the file?
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Old 09-26-2008, 10:01 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,430,757 times
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I know the bank does because they ALWAYS want a COOKIE CUTTER FHA deal.
When I worked at Bank of America they always wanted perfect conditions otherwise they would reject the loan. Lenders are a lot more lenient than banks. You have it backwards.

Brokers deal with banks and lenders. If I have a great borrower with good credit score, and verifiable income, then I send them to the best FHA lenders. If it's a lower score, then I send him somewhere else.

Also, FHA/VA are not loans that banks want to portfolio.

Quote:
Originally Posted by LJ Charlotte View Post
so renriq, youre telling me that if you broker your loan to an outside lender (because by your posts on here i assume you are a mortgage broker), that outside lender never adds their own conditions to the file?
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Old 09-26-2008, 10:22 AM
 
Location: Charlotte
52 posts, read 120,131 times
Reputation: 23
I'm going to have to disagree with you there. I work for a bank mortgage company and to try to paint a picture that if you go to a bank you aren't going to get a loan unless you are a "cookie cutter deal" is ridiculous. I dont work for Bank of America and never have but just because you may have had a tough time with your govie deals there doesnt mean all bank lenders are tough. I have also been a broker in the past, so I know exactly how brokers work. When you have to broker your loan to an outside lender whether it is your "best FHA lender or someone else" you are at the mercy of HUD Guides and the outside lenders own guides. If you are trying to portray that it is easier to send a loan to an outside lender rather than underwriting the deal in house, you are the one that has it backwards.
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Old 09-26-2008, 10:32 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,430,757 times
Reputation: 1008
are you telling me banks 'portfolio' a FHA loan?

I have been writing FHA loans for a LONG TIME, and I haven't had any FHA lenders ask for additional conditions that were NOT in the HUD Guides.

For example, does your bank write FHA loans as low as 400 credit scores?
FHA has NO CREDIT SCORE requirement...which means the score can be as low as 350. Not all lenders write FHA loans that are less than 580....especially banks. THAT is outside the realm of HUD guides

Quote:
Originally Posted by LJ Charlotte View Post
I'm going to have to disagree with you there. I work for a bank mortgage company and to try to paint a picture that if you go to a bank you aren't going to get a loan unless you are a "cookie cutter deal" is ridiculous. I dont work for Bank of America and never have but just because you may have had a tough time with your govie deals there doesnt mean all bank lenders are tough. I have also been a broker in the past, so I know exactly how brokers work. When you have to broker your loan to an outside lender whether it is your "best FHA lender or someone else" you are at the mercy of HUD Guides and the outside lenders own guides. If you are trying to portray that it is easier to send a loan to an outside lender rather than underwriting the deal in house, you are the one that has it backwards.
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Old 09-26-2008, 11:48 AM
 
Location: Cary, NC
1,036 posts, read 3,707,591 times
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Quote:
Originally Posted by LJ Charlotte View Post
When you have to broker your loan to an outside lender whether it is your "best FHA lender or someone else" you are at the mercy of HUD Guides and the outside lenders own guides.

Ummm.... if you are doing an FHA loan, aren't you ALWAYS at the mercy of HUD Guides? That is kind of necessary if you want an FHA loan.

As for lender's guides... you are right. You are up to the lender. But what is better: 1) Go to a bank loan officer that has ONE set of lender guidelines he can underwrite to or 2) Go to a broker loan officer that has MULTIPLE (maybe 10-20) set of lender guidelines that he can submit the loan to?

I both bank and broker loans and there are benefits and drawbacks to both. But its a FACT that banks have 1 set of guidelines, their own, that they need to follow while a broker has >1 because they can submit it to multiple places.

My bank does FHA down to 550 with automated approval, 580 with manual underwriting. If I get someone with 575 that needs a manual underwriting, my bank won't do it.... but I can send it to another lender that will do manual underwriting to 550. Thats the flexibility of the broker, you can have access to all the programs and rules with 1 application instead of shopping the loan yourself.

Of course some brokers have no clue about what they are doing and cheat customers, but how brilliant were banks in judging risk that they now need the government to bail them out?
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Old 09-26-2008, 01:04 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,663,059 times
Reputation: 249
Quote:
Originally Posted by rcarrillo View Post
As for lender's guides... you are right. You are up to the lender. But what is better: 1) Go to a bank loan officer that has ONE set of lender guidelines he can underwrite to or 2) Go to a broker loan officer that has MULTIPLE (maybe 10-20) set of lender guidelines that he can submit the loan to?

exactly
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Old 09-26-2008, 01:53 PM
 
1,266 posts, read 2,281,207 times
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I'm in Powhatan County VA, I believe 350K is OK here for FHA. Maybe it would be easier to ask who should I avoid in shopping for this FHA cash out loan? Also, at the risk of insulting someone (sorry if I do) why should I use a broker? Aren't they just a middleman whom I end up paying more to? I have always arranged loans on my own in the past. Again, I don't mean to offend, I'm sure brokers provide a good service but I try to cut costs where possible and do the leg work myself.
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Old 09-26-2008, 04:33 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,430,757 times
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Your limit is at $528,750 so you're good.

BTW Brokers are known to charge btwn 1-1.5% LESS thank a bank.
That's a fact proven by closed loans.

Also, brokers are helping you find the best lenders who ARE NOT always available to the public. There's a lot of FHA lenders who only do wholesale.

Either way....I would shop around with banks and brokers.

Quote:
Originally Posted by crittersitter View Post
I'm in Powhatan County VA, I believe 350K is OK here for FHA. Maybe it would be easier to ask who should I avoid in shopping for this FHA cash out loan? Also, at the risk of insulting someone (sorry if I do) why should I use a broker? Aren't they just a middleman whom I end up paying more to? I have always arranged loans on my own in the past. Again, I don't mean to offend, I'm sure brokers provide a good service but I try to cut costs where possible and do the leg work myself.
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Old 09-26-2008, 09:23 PM
 
Location: MID ATLANTIC
7,827 posts, read 19,062,054 times
Reputation: 8640
Quote:
Originally Posted by crittersitter View Post
I'm in Powhatan County VA, I believe 350K is OK here for FHA. Maybe it would be easier to ask who should I avoid in shopping for this FHA cash out loan? Also, at the risk of insulting someone (sorry if I do) why should I use a broker? Aren't they just a middleman whom I end up paying more to? I have always arranged loans on my own in the past. Again, I don't mean to offend, I'm sure brokers provide a good service but I try to cut costs where possible and do the leg work myself.
I personally recommend you get quotes from both a broker and a bank. Price may not be the final determination, but it will help you with the demeanor of the loan officer and if you feel there is a level of trust. I make the statement about price, because I just left a bank that I did have the best quote and was authorized to cut quite a bit "just to win the deal." The problem? It was unbelievable what I had to go through 24 hours prior to the closing, or the clear to close. And that was in-house! Granted, underwriting was not in the same office, but I was linked to the same computers and had telephone extensions and Instant Messaging....and I still had issues closing the loan.

I recommend when you talk to a broker, you find out if the file has to go out for underwriting, to whom and physically where. Around the corner or across country? Same for closing. A direct lender, or bank like me, also had it's advantages. My underwriters are within 100 steps of my office. My assistant is right outside my office, she processes and closes the loan (and on certain files, she can underwrite it). My downside can be price...I can't shop 12 lenders. My advantage, I don't have to rely on anyone else for underwriting or closing and I know the specific guidelines my company requires. Be sure to question what happens in the event of a policy change, will your loan be grandfathered? And for it to be grandfathered, what is required. (some require lock, some require loan approval must be issued).

But at the end of the day....banker, broker, credit union, whatever, you should go where there is the greatest comfort you receive. Because, anyone can run every possibility they can think of by the loan officer and it's going to be the questions you didn't ask that get you every time.

The good news, the ones that are still around are the most experienced. The fly-by-nights have flown the coop for the most part......
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