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Old 02-01-2009, 04:40 PM
 
305 posts, read 1,715,519 times
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Would y'all think a Realty Company who has their own Mortgage Company of the same name would be a good bet? Or would you think that would be a conflict of interest and work against me?
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Old 02-02-2009, 05:21 AM
 
3,586 posts, read 6,528,412 times
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Quote:
Originally Posted by teebopop View Post
Would y'all think a Realty Company who has their own Mortgage Company of the same name would be a good bet? Or would you think that would be a conflict of interest and work against me?
I was suspicious also. I used a mortgage broker husband of one of the real estate agents partners.

At first he wasn't giving him what I considered "market" rate for someone of my high credit and income level.

I went to another broker, threaten to use the other brokers service if he did not match. In the end he matched the other broker...giving me some sob story how he was only making $1200 in commission. I knew this was complete BS. But mortgage broker who was the husband was reputable and many others had used him.

So just shop around and compare. It doesn't hurt.
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Old 02-02-2009, 10:09 AM
 
305 posts, read 1,715,519 times
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Is it "legal" or "ethical" to apply to two different mortgage brokers at the same time?
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Old 02-02-2009, 10:32 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,567,429 times
Reputation: 958
Quote:
Originally Posted by teebopop View Post
Is it "legal" or "ethical" to apply to two different mortgage brokers at the same time?
Absolutely. Not only that but it is in your best interest to shop around. Be honest and upfront with each broker and look out for your financial interests.
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Old 02-02-2009, 01:06 PM
 
Location: Clayton, NC
502 posts, read 1,581,878 times
Reputation: 407
Quote:
Originally Posted by teebopop View Post
Is it "legal" or "ethical" to apply to two different mortgage brokers at the same time?
Definitely! It's no different from shopping around for a car. I encourage my clients to do so.
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Old 02-02-2009, 07:17 PM
 
Location: MID ATLANTIC
8,407 posts, read 21,593,206 times
Reputation: 9903
I advise people to do it all the time.

Do tell them and do be prepared to pay duplicate charges (appraisal and credit).
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Old 02-02-2009, 07:27 PM
 
Location: Orlando
8,270 posts, read 12,271,759 times
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Here is the issue ... be careful of how many people you give your SSN to. they will run your credit and I don't care what they say it affects your score.

Interview your mortgage broker and see what they will do. They should be able to tell you a good idea. use the ratings in the paper and you can see their offerings.

Shop around. I'm not too much of a fan with the agents that double the deck, I've done it and it is just a conflict I think. I think the same of those that have back deals with their title companies. I think that is not terribly ethical. ...but they do it anyway.
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Old 02-02-2009, 08:02 PM
 
Location: MID ATLANTIC
8,407 posts, read 21,593,206 times
Reputation: 9903
Quote:
Originally Posted by AONE View Post
Here is the issue ... be careful of how many people you give your SSN to. they will run your credit and I don't care what they say it affects your score.

Interview your mortgage broker and see what they will do. They should be able to tell you a good idea. use the ratings in the paper and you can see their offerings.

Shop around. I'm not too much of a fan with the agents that double the deck, I've done it and it is just a conflict I think. I think the same of those that have back deals with their title companies. I think that is not terribly ethical. ...but they do it anyway.
Exactly why I said to be sure to share the information w/ the lenders. As an experienced loan officer, I will rarely "play" 2nd and will wish the customer good luck and offer to pass them over to a junior loan officer. (it's illegal to refuse an application because they are double app'ing. It's illegal to tell them you can't work with them because they fired their realtor, your referral source). I give heart and soul to each of my customers, answering their emails and questions promptly.....advising them of potential pitfalls all the way to closing. My greatest reward for this is doing their 3rd, 4th, and 5th loan, their children's loans, and just last week, my first grandchild's loan.
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Old 02-02-2009, 10:21 PM
 
262 posts, read 972,394 times
Reputation: 216
I had a bad experience with a mortgage broker that my Realtor recommended. They weren't related to one another, but the same principle applies.

This "guru" didn't know the current FHA rates and kept feeding me a bunch of incorrect numbers. He told me that the upfront MIP for FHA was 3.5% (it's 1.75%), and he told me that the annual MIP was .75% (it's .5%). I questioned these numbers, because they weren't even close to what I had read online. I finally pulled the official numbers of the FHA/HUD website and called him on it. As I recall, he was confusing the required downpayment percentage with the upfront MIP rate, and he was just guessing on the annual MIP rate. I don't think he was trying to pull one over on me, but that level of ineptitude made me uncomfortable.

There were also a number of other red flags with this guy. He told me that I shouldn't shop around for a better rate because he was an independent broker and would get me the best rate. He also warned that my credit score would take a major hit if a bunch of institutions did a hard pull on my credit, which was a flat-out lie because any "hard pulls" within a 30 day window should only count as a single inquiry and should not adversely affect a credit score. What really made me question him were the GFEs he drew up that quoted interest rates above 6% when the going rate was 5.25-5.5%. I don't know if he was trying to rip me off, or if his figures were just out of date, but his lack of professionalism really turned me off. I pretty much told him to take a hike at that point.

After doing a lot more research (and consulting my dad), I came up with a strategy to take out a conventional loan and avoid the headaches of FHA and mortgage insurance altogether. This is something that's very doable for me when the $7,500 tax credit is taken into consideration (another thing the broker wasn't even aware of) . I also found a bank that gave me a rate of 4.875%, avoid tax/insurance escrows and will keep my loan for its entire lifetime.

It definitely pays to shop around. Even if you do go with this guy, verify everything he tells you with another source
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Old 02-03-2009, 07:29 AM
 
Location: MID ATLANTIC
8,407 posts, read 21,593,206 times
Reputation: 9903
Out of curiousity, how long ago was this? There are still overnight sensations that are trying to make a living in this business, but their lack of knowledge is like a neon sign. In the midst of the bubble, they were nothing more than order takers, trained on Pay Option Arms and subprime lending. We have an entire generation of loan officers out there that never did an FHA loan, or, an A paper conventional loan for that matter. If you ran into a loan officer with 5 years or less experience, they probably do not have the VA, FHA, USDA and state bond experience needed to do this job without a lot of mistakes at the borrower's expense.


Quote:
Originally Posted by bighusker View Post
I had a bad experience with a mortgage broker that my Realtor recommended. They weren't related to one another, but the same principle applies.

This "guru" didn't know the current FHA rates and kept feeding me a bunch of incorrect numbers. He told me that the upfront MIP for FHA was 3.5% (it's 1.75%), and he told me that the annual MIP was .75% (it's .5%). I questioned these numbers, because they weren't even close to what I had read online. I finally pulled the official numbers of the FHA/HUD website and called him on it. As I recall, he was confusing the required downpayment percentage with the upfront MIP rate, and he was just guessing on the annual MIP rate. I don't think he was trying to pull one over on me, but that level of ineptitude made me uncomfortable.

There were also a number of other red flags with this guy. He told me that I shouldn't shop around for a better rate because he was an independent broker and would get me the best rate. He also warned that my credit score would take a major hit if a bunch of institutions did a hard pull on my credit, which was a flat-out lie because any "hard pulls" within a 30 day window should only count as a single inquiry and should not adversely affect a credit score. What really made me question him were the GFEs he drew up that quoted interest rates above 6% when the going rate was 5.25-5.5%. I don't know if he was trying to rip me off, or if his figures were just out of date, but his lack of professionalism really turned me off. I pretty much told him to take a hike at that point.

After doing a lot more research (and consulting my dad), I came up with a strategy to take out a conventional loan and avoid the headaches of FHA and mortgage insurance altogether. This is something that's very doable for me when the $7,500 tax credit is taken into consideration (another thing the broker wasn't even aware of) . I also found a bank that gave me a rate of 4.875%, avoid tax/insurance escrows and will keep my loan for its entire lifetime.

It definitely pays to shop around. Even if you do go with this guy, verify everything he tells you with another source
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