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We are finally under contract and now we need to secure the funds. We'll be putting down 20% for a 30yr fixed. We have excellent credit and can document our income. Our situation is fairly straightforward, so I'm wondering if we would be better off going directly to the source rather than bringing in a middle man? Any advice would be greatly appreciated.... Thanks
If you are putting down 20% and have good credit, you probably don't need the services of a mortgage broker. You are what is called an "A" borrower. Shop around with the banks for the best rate. By the way, for someone in your situation the best deals are to be had with a Credit Union.
Well I use to be a mortgage broker so have some experience here. With your credit and what you are putting down going directly to the source probably makes more sense. However, that doesn't mean you shouldn't look into both avenues to see. You also have to look at what your goals are. A mortgage broker may get you a little better rate and lower monthly payment than going to the source, but that would likely come at a price of either having a higher loan amount or putting a little more $$ down as closing costs will be higher with a broker. Basically you have to figure out will the $$ you save on a monthly basis by going to a broker make up for the extra costs from a broker (either down payment or loan amount). The amount of time you think your going to live in the house plays a major role. If you think it will just be for a few years, you are better off going to the source, if you think your going to live out the amount of the loan in that home, its probably better to go through the broker, if its somewhere in between well thats what a calculator is for
A broker gets his/her money from the transaction, one way or another, usually in points up front, which is how you can get slightly better rates. I think the credit unions are so competitive right now that brokers are not necessary for you, that you should do the little extra work to get the rate on your own. A credit union is there to help its customers, they do not hide fees, everything is straight forward. No offense at all meant to mortgage brokers when I say this, but after what happened with this sub-prime disaster, brokers are having a much tougher time getting lenders to get them mortgages for their clients. Most often, using a mortgage broker means that your mortgage will most likely be sold off before your first payment is even duw. I would suggest to keep it local. That way, if you have any issues, you can walk into a branch and get personal assistance, versus talking to some kid on the other end of the telephone.
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Credit Unions
