Banker or Broker for Loan? (loan officer, real estate, approved, credit score)

[sallyg]

If I have a low-med credit score and am interested in a FHA loan- where would I begin in finding a mortgage? Do I need to work w someone who specializes in FHA loans? Friends have suggested some mortgage broker. Would I be better off going directly through a bank or can a broker better ensure we get the mortgage? We live in NYC area. thanks!

[Daddys///M3]

I would definitely talk to someone that has experience with FHA loans. They have their own specific set of guidelines and can be quite confusing for one that doesn't know much about them (I find the rules on FHA mortgage insurance to be the most misunderstood guideline). I would also talk with a couple of banks and a couple of brokers. Multiple credit pulls by mortgage companies within 30 days will only count against your score as one inquiry, so having four different lenders pull your credit within days of each other won't drag your credit score down. Get referrals from friends and family that have good experiences with specific loan officers, as two different loan officers from the same lender can yield completely different results.

[NJ987654]

What is your score?

[TampaKaren]

Sorry, but this makes no sense to me. If your credit score is low-med as you say, why would you not repair your credit first so you get better terms? It doesn't take that long.

But to answer your question IMO, you're going to need a broker who's approved for FHA. Banks are looking for ways to deny loans.

[dad2jules]

Originally Posted by TampaKaren

Sorry, but this makes no sense to me. If your credit score is low-med as you say, why would you not repair your credit first so you get better terms? It doesn't take that long.

But to answer your question IMO, you're going to need a broker who's approved for FHA. Banks are looking for ways to deny loans.

I am a LO for a broker and I appreciate your support, but where do you think we send our files to? We send them to banks, we just have many options not 1 and that is a benefit to working with a broker.

Again- thanks for your support of brokers.

[TampaKaren]

You're welcome, dad2jules, and that was the point. Sallyg has to work with someone who has multiple financial resources instead of a single bank option. I'm not a lender, but I do hear and learn from real estate customers.

[NJ987654]

The broker vs banker has been going on forever. The answer is, it depends. I have to agree that, on a more difficult client, a broker is better. That being said, if the credit is low, no one is going to get it approved (which is why I ask the OP's score).