Josh knows his business, well said Josh.

Jason,

I agree, not one lender/investor/bank/broker will have the best pricing or rates all the time. I do think borrowers hurt themselves by shopping "too much". I believe that we are in an industry right now, at least here in Floria, that is down and many people are hurting...because of this deception is at an all time high. I believe that sites like Lending Tree or Zillow Mortgage Marketplace is where you can hurt your self. Competition brings on deception. For instance, I had a client that was quoted a rate and fees that was just unobtainable. The borrower gave my GFE to the competition and they said they could beat my rate by .125% with the same fees. When I asked my client for their HUD at closing, I noticed that their rate was .25% higher than what I quoted them based off the up front interest. Basically the other lender pulled a bait and switch. Another tactic of direct lenders or banks as they are not as heavily regulated as brokers since we are the supposed reason for demise of our economy.

Jason, your statement of Brokers being retail makes no sense. Retail is going directly to the Bank themselves...like walking into a Bank of America or Suntrust branch office and trying to obtain a loan. And I cite BofA because I do my personal banking with them and make it a point to go in every morning to see what they have advertised as their rate when you walk through the door. They have it out there in plain black & white terms. Rate, origination fees, and discount fees, and every day they are exactly what I said before, about .5% higher in rate and in fees than what we can offer.

I'm not going to begin to say that all brokers operate like I do. I know there are some brokers out there that try to make 3 points on every transaction and subsequently charge higher rates and fees to the buyer than what they could possibly get somewhere else. While, to be honest with you, I don't totally blame them because why is it a broker/direct lender/bank shouldn't make 3% to handle someones financing transaction but a Realtor makes 3% for handling a contract and seeing that all inspections and negotiations are done in a timely fashion.

Theres my rant and rave for the morning. Lila, didn't mean to snap at you, just didn't like how you were telling people to go directly to the Retail Banks. I couldn't disagree more that doing the leg work yourself is not the way to go. With interest rates as volatile as they are, interest rates can change by the minute and a broker has access to these lenders rate sheets and guidelines at their fingertips. So while it may take a borrower a couple of days to check with all the retail banks and have their credit pulled multiple times to get some quotes, all while interest rates are changing and can't compare apples to apples, we can pull credit once and shop their scenario in minutes with multiple lenders. Also we do not charge more than the retail banks. 9 out of 10 times, we will have a lower rate and fees than if the borrower was to walk into a bank directly.

Joshua Lerette - The Tampa Bay Mortgage Pro
Innovative Mortgage Services, Inc.
727-488-7355
Josh@thetbmortgagepro.com

Thank you Jason for your comments. You are correct on both fronts, I do not know this gentleman, but I speak from experince, having been in the real estate and mortgage banking industy for over 20 years. As you clearly state, it is always best for home buyers to check with several lenders when looking to obtain financing for the purchase of a home.

Lila Lopez
Tenzer Realty
305-772-2521

Joshua,

I don't think that Lila was trying to discredit you, she did clearly state that it was her experience (and I'm assuming she doesn't know you personally). I happen to work for a direct-lending bank that has a number of co-investors, including BofA, Chase, Wells, etc. Since we hold warehouse lines we deal with large chunks of cash and consequently price lower than those paying retail (ie- most brokers). I'm not saying anyone should ignore brokers, but to cite one example (BofA) is a little misleading. I think you'll agree that no one has the best pricing 100% of the time.

One thing we can all agree on is that it is the borrower's right and responsibility to make educated decisions from extensive research. Speaking directly to the lender or broker is the best way to compare apples to apples, right?

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com

Lila...wow, you couldn't be more wrong. Going directly to the bank is not a better option then going with a broker. There are certain banks that offer better rates and terms for certain types of borrowers and it is a brokers job to find those banks for a particular situation for a borrower. We offer lower rates and less fees than if you were to go directly to the bank. For instance, on average, we are about .5% lower in rate and about a .5% lower in points than if you were to walk directly into BofA and try to obtain a loan. You continue to go to the bank and you take the higher rate and fees but don't thwart of potential buyers to utilize the services of a broker. Thank you.

P.S. Yes, we make money...as does anyone else providing a service.

Joshua Lerette - The Tampa Bay Mortgage Pro
Innovative Mortgage Services, Inc.
727-488-7355
Josh@thetbmortgagepro.com

Hello Gerry,

As a realtor with 20+ years of experience, I can tell that a lot has to do with the lender that you select. More often than not one of your better options is to call banks directly as they tend to offer not just the best rates but lower closing costs. When you do your search with mortgage brokers, they will make their fees, and often times at a higher rate regardless of credit. In doing your financing with a mortgage broker they do have the ability to search not just with banks that would provide you with the financing based on your credit scores, as welll as you employment history, etc, but that of course may sometimes come at a slightly higher rate and closing fees. Many of the banks do provide FHA financing, such as Bank of America, Wells Fargo, etc. Keep in mind that lenders do not look exclusively at your credit score but a lot of other factors.

Gerry I can go down to a 530 FICO!!! As long as you have no lates in the past 12 months.
Under FHA guidliness there are no min credit score requirments. Most banks now require a 620. But like I said FHA has no minimum credit score requirments and if you can provide 12 months on time rental history, canceled checks or VOR from a mangagment company then I can get you approvedl.

Hi Gerry,

The FHA program will allow you to 'qualify' even with poor credit and you will pay a premium for the interest rates. Why not work on repairing your credit rebuilding your credit rating developing new habits so that you can qualify for a mortgage on excellent terms? It could save you $300.00 dollars a month or more! Imagine how much easier life would be if you had better credit and you could own a home and afford the payment and even have a nice car because you took action to improve your life! I can help you with your credit repair so you can get into a sensible mortgage and a home you can afford so you are set up for success! Good luck

620 is the standard score needed for an FHA loan but I have a couple lenders that go as low as 560!

Let me knwo if I can help

Ryan
954-394-9005

Gerry Martinez,
My firms requirements are also 620, but we offer free credit repair if your scores are lower than that. Feel free to call me anytime for more details.

thx,
Frank Olguin
Mortgage Banker
AmericaHomeKey Inc.
500 W. Cypress Creek Rd, Suite 330
Fort Lauderdale, FL. 33309
Folguin@americahomekey.com
Hablo Espanol
office 954-771-7715 x104
cell 561-386-9731
pfax 954-379-4469
Florida Mortgage Lender
No. ML0700325

Hello Gerry,

The answers below are correct, it is in the hands of the individual investor. 620 is the standard for most automated approvals used by brokers. Some will go down to 580 credit scores, but many of those lenders will allow rate and term only. There are a few lender that go as low as 500, but it is VERY difficult to get an approval. Good luck to you.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com

FHA has no minimum credit score requirement, it's the individual lenders that have overlaying guidelines. Most are at 620 but there are still lenders out there that allow for a score below 620. You will have a little more difficult time qualifying but it's available. For more information on what kind of documents you'll need, feel free to contact me for further information.

Joshua Lerette - The Tampa Bay Mortgage Pro
727-488-7355
Josh@thetbmortgagepro.com

The most important thing to them is your ability to pay.

Fha, is basicaly there to make sure the lender can recoup some of the cost if you default, although you need to be approved for their system. Each lender is in control of their own money.

Thanks David...but this is real confusing as the fha website says they do not care for the FICO score actually for work history and late payment????

620, some lenders do less but almost all are 620.