Best way to shop for rates (insurance, loan, real estate, fees)

[sean&diane]

I will be buying a house in the near future and want to make sure I am getting the best rate that I can. What's the best way to go about it - I'd rather not call 10 different lenders. Is there a website you would recommend. I refuse to use a mortgage broker.

Thanks

[oneasterisk]

Why don't you want to use a mortgage broker?

[sean&diane]

I have no confidence that they are looking out for my best interest. I feel they are sales people and are primarily out to maximize their compensation. I also feel like that industry shares significant blame for the state of our economy and I refuse to support it.

[oneasterisk]

Ok fair enough. When I was shopping for rates, I called Bank of America and Chevy Chase Bank since I have accounts there and also the mortgage lender that serviced my loan for my current home. My lender actuallys spent about 15-20 minutes with me talking about my plans for the property and how the industry was sitting at the time. The bank guys just pretty much told me the rates and said goodbye. No customer service skills in those yahoos so I passed on them. They all pretty much came in with similar rates so I went with the guy who serviced my loan.

I guess I'm old fashioned when dealing with people.

[Daddys///M3]

Originally Posted by sean&diane

I have no confidence that they are looking out for my best interest. I feel they are sales people and are primarily out to maximize their compensation. I also feel like that industry shares significant blame for the state of our economy and I refuse to support it.

Although you are entitled to your opinion, and I in no way am trying to sway your opinion, the fact of the matter is that you are wrong. Are there bad brokers? Absolutely, just as there are bad bank LOs. The fact is though that investment banks and lending institutions are, in fact, the main cause of the state of our economy. Brokers did not write loan guidelines. Brokers did not securitize loans, package toxic loans with good ones in CDO's. Brokers did not give these securities AAA investment grade ratings. Brokers did not sell these securities to anyone who would buy them (which was everyone). As a matter of fact, brokers did not repeal the Glass Steagal Act and introduce the Graham Leach Bliley Act, which removed the barriers set up after the Great Depression between banks, investment firms, and insurance companies. Do yourself a favor and educate yourself as to why we are actually in this mess. Again, I will readily admit that there were bad apples in the mortgage broker world, just as I will admit that there were many borrowers that lied about income to obtain 4 investment properties when in fact they were renters and knew nothing about home ownership. Just as I will admit that there were real estate agents pushing the client to buy more home than they could afford (again the buyer's greed takes precedence). Just as I will admit that there were appraisers that were falsely bumping up the values on these homes. Just as I will admit that there were account executives that were very handy with the white out, photoshop, and a printer (account exec's work for lenders).

Like I said, I am positive that I am not going to sway your opinion. That is not my intent. However, your bias against brokers is based off a belief in something that is just not true and I want to make anyone reading this aware of the reality.

As an aside, if you could get a better rate and fees from a broker than a bank, why would you let your bias get in the way of getting the best deal for you and yours? It just so happens that I am competing with Countrywide on a deal and I am beating them in rate (according to their online rate quotes) by at least 3/8's of a percent, and beating them in fees by about $1500. You really want to pay more so you can feel better about not supporting brokers, who you wrongly blame for the financial collapse of our system? Be my guest.

As far as your original question, try Lending Tree. When banks compete, you win.

[sean&diane]

If you want to start a debate about mortgage brokers, please start another thread. I only included that I was not interested in using brokers in my original post, so I was clear I was looking for options other than mortgage brokers.

[Fant]

First figure out where rates are in general for the type of loan you are looking to get. Then figure out how much you want to put out of pocket at closing in fees and points to get a lower rate. Once you decide on how much you are willing to put down, check all the major bank websites for their current rates with the point combo that you are looking for. Narrow down which ones seem to have the better rates and call them up to get a good faith estimate. Some may not give you a GFE without applying (and paying for an application). Some will give it to you easily. Some will have it online. Calculate the total fees and points vs rate that they are all quoting and call back the one that has the best rate and the best customer service (ie: how easy is it to get a hold of someone and how helpful are they with answering questions)?

Since the banks are all competing today most likely all the banks will be +/- $1000 of each other. So it really comes down to which you feel more comfortable with. A broker saves you time by doing all of this for you. But I understand wanting to do it yourself as it seems like a waste to have a middleman.