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Old 07-09-2009, 04:09 AM
 
Location: New York
427 posts, read 1,147,689 times
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How much commision does a mortgage broker usually get? How is it worked out?
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Old 07-09-2009, 06:13 AM
 
392 posts, read 1,437,043 times
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Depends on the lender. At large lenders, the may only make a few hundred a deal but they can do 30 deals a month. At brokers, it could be .5% of the loan amount or more if they get you to pay more. Shop around for the best rate and fees and don't worry if the loan officer is making money (so long as you are getting a good deal)
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Old 07-09-2009, 08:50 AM
 
Location: Wake Forest, NC
835 posts, read 3,672,178 times
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Quote:
Originally Posted by NJ987654 View Post
Depends on the lender. At large lenders, the may only make a few hundred a deal but they can do 30 deals a month. At brokers, it could be .5% of the loan amount or more if they get you to pay more. Shop around for the best rate and fees and don't worry if the loan officer is making money (so long as you are getting a good deal)

Just remember that you get what you pay for. H&R Block is cheaper than a CPA, Walmart is cheaper than Macys, and McDonalds is cheaper than Outback and in the end you get the same result when you walk out of any of them but not the same quality- taxes are filed according to law, red shirt, or a burger.

When making what for 99% of the population is the single biggest purchase of your life is not the time to cut corners.
Most complaints I hear are from people who found a great deal online from 2000 miles away not from someone who went to the local office and sat face to face, shook hands, and looked the Loan Officer in the eye.

Just my .02 but set your expectations according to the service you are buying.
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Old 07-09-2009, 10:48 AM
 
392 posts, read 1,437,043 times
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Quote:
Originally Posted by dad2jules View Post
Just remember that you get what you pay for. H&R Block is cheaper than a CPA, Walmart is cheaper than Macys, and McDonalds is cheaper than Outback and in the end you get the same result when you walk out of any of them but not the same quality- taxes are filed according to law, red shirt, or a burger.

When making what for 99% of the population is the single biggest purchase of your life is not the time to cut corners.
Most complaints I hear are from people who found a great deal online from 2000 miles away not from someone who went to the local office and sat face to face, shook hands, and looked the Loan Officer in the eye.

Just my .02 but set your expectations according to the service you are buying.

I agree and disagree. I agree that service has a value and don't try to save $50 by slamming the loan officer's compensation. You do get what you pay for. The loan officer has 5 voicemails to return, you want him to call you back first.

I disagree about working locally. In this day and age, geography is not the impediment it once was. Larger, centralized lenders sometimes (key word, sometimes) have more products and/or options.

If you loan is difficult (a lot of conditions, poor credit, a lot of paperwork), having a local lender can help processing the loan.
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Old 07-09-2009, 11:47 AM
 
Location: Denver, CO
1,800 posts, read 4,160,362 times
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There are times when you just can't close a deal locally. We closed on a house from long distance because we were still in the process of moving out of the old house. We never met the broker but she was local to the new house.

When we refi-ed, we tried her services but the fees just seemed too high. I found a lender another state away with very low costs and great rates. Closed in 2 weeks. Funny thing is they sold my loan promptly to my local bank!

People can lie to you just as well face to face as on the phone. You just need to have a realistic sense of what the rates are out there and what seems to be too good to be true.
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Old 03-25-2010, 07:00 PM
 
Location: MID ATLANTIC
7,846 posts, read 19,164,896 times
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Quote:
Originally Posted by Moonwalkr View Post
There are times when you just can't close a deal locally. We closed on a house from long distance because we were still in the process of moving out of the old house. We never met the broker but she was local to the new house.

When we refi-ed, we tried her services but the fees just seemed too high. I found a lender another state away with very low costs and great rates. Closed in 2 weeks. Funny thing is they sold my loan promptly to my local bank!

People can lie to you just as well face to face as on the phone. You just need to have a realistic sense of what the rates are out there and what seems to be too good to be true.
I think what dad2jules was thinking was local to the subject property. Many of my borrowers have never met me face to face - but I know their real estate agent, their agent's broker and most of the agents in their office. Not to mention, whatever appraisal service I use is going to be familiar with the area - with appraisers known to my bank.

I call it the big stick theory. If I screw up and it's in my back yard, that realtor knows not only am I going to do everything I can to make good on my mistake, but my manager (who is also local) and the bank (who is local) will move heaven and earth to make sure not only the borrower, but the real estate agent and title company are happy with the service provided. All it takes is "so and so did a bad job" to make it's way through a real estate office to create havoc for that company.

Ditech or Quicken - 3000 miles away could care less if Roger Realtor threatens to make sure they never see a buyer of his again. In fact, they probably laugh when they hear that. Ask a Realtor what they think. I have seen contracts accepted because the lender was known and the competition's was not known.
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Old 03-29-2010, 04:56 AM
 
10 posts, read 41,787 times
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Mortgage broker is certified professional who seeks the best mortgage and they earn the commission for lender. Mortgage broker are largest seller of the mortgage products.It is not travel agents, they often save money by the pocketing the commissionwhen they arrange their own trips.

Last edited by Green Irish Eyes; 03-29-2010 at 07:58 AM.. Reason: Links to business websites are NOT allowed on this forum.
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