I am working with a buyer's agent. He told me to get a GFE from the bank and from the mortgage broker I've been dealing with and he'll compare them with me. He did mention that the bank could up the prices on certain items to compensate for the $3000 towards closing they are offering me as an incentive.
Sue - The availability/professional aspect is something I'm concerned about. My mortgage broker has been so professional and available any time I need him. I can't say the same for the loan officer from the bank. He's started making jokes with coworkers when he's on the phone with me. I'm not offended by it or anything, it just makes me wonder if he's unprofessional on the phone what else might happen with him. Once I get the GFE, I think I'll be able to make a better decision. If they are within $1000 of each other it might just be smarter to go with my mortgage broker who has been awesome. That is of course if he can get me an interest rate comparable to the rate the bank has offered.
If I were the broker, I'd feel very honored if you gave me $300 or more ($500 would be spectacular).
Most important might be your promise to send him anyone you might speak with who needs mortgage services.
Thank you on behalf of the entire real estate community for having some integrity!
I'd like to use this as a platform though to discuss the other side.
Why do you think this very nice lady is wanting to pay this person? Because he DESERVES some form of payment! He has done work for this client, and she feels she owes him something. Now let's look at everyone else for a second. If you go to the dentist, carpenter, nail salon - etc. (you get the picture) they expect to be paid, and society expects to pay them.
The way we have let this go in this industry, society EXPECTS that realtors, loan officers etc. work for free unless something happens, and then they feel we are overpaid in general... thus, regenerating the expectation that we should not be paid for work that doesn't "pan out".
Our compensation under this system works out for those who work at it - but why is it ILLEGAL to be compensated for our time on another basis, say, hourly? I don't like that the regulators are involved to "protect" the innocent homeowner. The "innocent homeowner" needs protection, but compensation should not be something where we are so restricted. I believe that there certainly should be other compensation models - and the consumer could BENEFIT from them as well.
Haters, you may begin your attack.
Broker, 15 years, Architect
Am I allowed to give my real estate agent a gift or is he under the same restrictions?
I'm in escrow and Oct. 25th is my closing date!
Congrats on the new home purchase!
It great to see your consideration for them. Kudos to you!
Best of luck to you.
Sotheby's International Realty
I want to commend you for even thinking about compensating your lender for all his hard work. That is not something we see in our business everyday. Like you have heard from all the others, the best way to pay him for all his hard work is to refer him to your family, friends and co-workers,anyone you may know that might be looking to buy in the future. Pay it forward. Congratulations on finding your new home!
If you feel he has done you a service, you might want to take him out to a great dinner and always keep him in mind for referrals.
First let me applaud you for being a thoughtful person to even consider this question. Time and time again people use others services without even giving this a thought if they end up not using that service, even if the person was very helpful. They best way to ever repay anyone who has done you right, is to refer them to anyone you speak to about obtaining a mortgage and telling others how helpful they were. A great referral will always be the best complement.
It is a nice thought to want to compensate someone's time, but keep in mind referrals are the best compensation he could receive from you.
Your wanting to do a kind gesture is appreciated, but RE agents don't understand that a mortgage broker cannot accept anything of value from you. Not a gift card, not a peanut butter sandwich. The advice for dinner and other things is just plain wrong. Give them your thanks and your referrals, they cannot accept anything else.
What a gracious and loyal person you are - and it's a shame that you've been caught up in an REO-held-for- ransom property. There are a few lender/asset holders holders that throw insanely great terms in their counter if you use "their" lender.
Last year, I had one that countered my buyer $2000 LESS than his offer, and while we asked for 3% towards closing costs, they offered 6%. Without their lender? The counter was at his offer, but they would not pay closing costs at all, nor would they take an FHA deal.
Tough decision - and while he respected his very thorough and professional loan officer, he really wanted that property. Theoretically, he could still have used his lender, but he would have needed to find more money somewhere for a downpayment.
He called his loan officer, who couldn't match those terms, either. The LO was disappointed but understood - and kept my client's info on file - and just did a 1+% rate reduction refi for my client. Time-deferred business and a win-win for both of them!
David - I hope I'm being loyal to my real estate agent too! He has also been SO extremely helpful. He always answers his phone when available and calls me back the same day. He has shown me about 10-15 houses and has written up about 5 offers total. I feel bad that he probably won't make much commission because my budget is $150,000. I told him that some day he will be selling me one of the $300,000 houses that are over the fence from this $150,000 house! I've told him numerous times that I really appreciate how responsive he has been to me. He will be getting a nice gift from me as well : ) I'm not sure what to get though. I was thinking maybe a big gift card to a fancy restaurant for him and his wife. He has spent many nights talking to me on the phone and writing up offers for me...they deserve a nice night out together!
I would give your mortage broker a chance to meet or beat what they are offering you. You may find he is motivated to earn your business.
Keep in mind, the purchase price of the home should have no bearing if you choose to work with the bank that owns the home.
I hope you are as loyal with your real estate agent as you are with your mortgage lender....
Best of luck... David
I just hate knowing that the mortgage broker I've been working with is so much better. He always answers my calls or immediately calls me back. He has even gone out of his way to meet me on weekends. I know I'm not going to get near the same service from this bank.
I told my realtor I feel very bad about not being able to use the mortgage broker I've been working with. They are actually good friends with each other and he told me not to worry about it because it's just the nature of the business. My realtor told me he'd contact the mortgage broker to explain to him what happened. I also plan on calling him and writing him a card thanking him for doing such a great job at helping me. I will also recommend anyone looking for a house to him. I'm hoping to save money and have income properties and will definitely use him for the financing!
My dad questioned why I didn't offer less than they were asking which kind of has me second guessing myself. The market here is so crazy right now. I've put so many offers on houses and still get outbid. I even bid $15,000 over asking price on one house and was still outbid. My realtor ran comps on this house and thought it was priced fairly. I just decided to go in at full price to avoid getting outbid again but the house had already been on the market 100 days...granted they had dropped the price $8,000 right before I put in my offer.
Am I allowed to say the name of the bank without jeopardizing getting the house? : )
This is really frustrating but I guess it's better than a short sale!
We counter offered with a $2000 deposit and put the contingencies back in place. They called and said they'd only accept that if I agree to use their lender. I agreed because I really want the house, but it seems like they just trapped me into using them.
I know $4500 might not seem like a lot to some people, but I'm just 23 years old and have been trying really hard to save my money for a down payment. If I lost that $4500, it would really put a road block in me buying my house.
To my knowledge an REO may require that you get pre-approved for a loan with them, but it's illegal for them to require you finance with them to purchase their REO property.
Hang in there. Surely, some Real Estate Agents will come on board that have REO experience to give you their opinion.
Best wishes, Rudi
I'm really bummed because I really do love the house, but I'm not excited to use their lender...especially since now they've forced me to use them so they know they don't have to treat me that well because there's no competition.
That's as much bad information as I've seen from one of my peers. I've seen a lot with over 5,100 contributions on Zillow the past three years.
I don't think you even read the Op's question entirely, or you wouldn't have respond in this manner. At least I hope you wouldn't have.
Please excuse him Annalee.
Best wishes, Rudi
I have a question. Why would you refer anyone to a lender that you do not work with? Refer to the lender that you end up working with because that person will probably end up doing a good job for you. Us lenders need to realize that we work for you and the good ones have a vested interest in making sure that you are wildly happy with the service we provide. The other thing you might want to consider is not working with a mortgage broker. Mortgage brokers have no control over the lender, the lender being the actual company that funds your loan. If you are truly looking to get the best deal possible consider working with a direct mortgage lender. Direct lenders have skin in the game and they are on the hook and as a result can work with you that much better. I wouldn't give a mortgage broker who you don't work with anything other than an explanation. By the way who ever you end up working with, you should check to make sure they have a license to originate loans. If you work with a bank like Chase etc. those loan officers are not licensed and are not paid in the same way that independent mortgage bankers are and as a result are less concerned with closing your loan on time. Here's a link to the website you can search yourself on who is the cream of the crop.http://www.nmlsconsumeraccess.org/
Your current mortgage loan originator should be able to come close if not right on. What has been shown to you is you have someone you know you can count on that you appreciate. That's very important. Trust is not easily gained and should be cherished.
Happy funding, Rudi
Your desire to compensate your lender is admirable and my advice would be to at least pay for the charges the lender will encure if there are any given the deal fell through. Example: Appraisal (around $400., a broken lock (if lender is charged for the broken lock agreement).
Truly thoughtful on your part but not required.
I worked with a mortgage broker for over 7 months as I preparing to enter into the building process. Gave him all my paperwork so he would get an exact picture of my financial situation and he ran a credit report (that did not change except for the better over time). Took me forever to get a GFE from him. I was going to do a USDA mortgage. Red flags began to go up when he would mention in nearly every email about doing an FHA mortgage. The clincher though was when I (1) found another mortgage company with cheaper fees and (2) when he made the comment in one his last emails "I don't know when I last did a USDA mortgage." Now, for someone else that may not bother them, but for me, I wanted someone who knew the USDA process and was batting for me.
I did change companies and while I did feel somewhat bad, business is business.
To me, you've answered your own question. Ok, just my opinion again...but....if the bank mortgage guy can not stay focused on you the full time you are with him, I too would question his ability to professionally see the transaction through. Just my opinion though. Drives me crazy when I'm a client if my service provider has other things to do besides focus on me.
It's super great of you to want to compensate your mortgage broker if you go with the bank, but, at the end of the day, I bet the mortgage broker is the seasoned pro who can get your loan money wired, and close the transaction for you with a minimum of hassle.
Good luck Annalee. Your question shows you have class.
At the end of the day, a referral would be great, and dare I suggest an anonymously sent starbucks card?!
You seem pretty smart, so just be sure the bank's loan and offer really is better over the life of the loan, then what your broker has set up for you.
You can really use whomever you want. A nice gift would be a nice gesture...but I think you're underestimating the work still to be done in negotiating the loan. Whomever the bank would have you work with, while they're an employee of that bank, does not demonstrate what their experience level is. Will they be as responsive? Keep you as informed along the way? Who knows? A good interest rate is pretty much a given in this market, good service is not. Ask your current lender to 'match' the incentivesm if they mean so much to you.
If it were me, I'd stick with who's already demonstrated good service.
That's just MY opinion.
I cannot begin to say how fair you are as a person to think of how to compensate your mortgage broker for what they did for you. We should all be so lucky to have such thoughtful clients as yourself.
That said, may I suggest you let him know where you are with the bank owned property, the incentives & the rate you are receiving. I have a feeling he may be able to get very close, if not beat the offer & you get to stay with him to fund your loan.
Good luck on your purchase,
Roswell Moore, CMPS
Certified Mortgage Planner
Direct Lender, Mortgage Bank where we originate, process, underwrite and fund our own loans in-house, on time.