Home Buying in Staten Island>Question Details

charleslanza, Home Buyer in Staten Island, NY

Should I use a mortgage broker? What is the best way to shop for a loan? Do lenders/brokers need to run my credit in order to provide a quote?

Asked by charleslanza, Staten Island, NY Wed Feb 27, 2013

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I absolutely prefer mortgage brokers over the big banks. Brokers often work with between 20-50 lenders and can better match you to the best program. The Big Banks, have their 3 or 4 loan programs and if you don't slot in perfectly you end up paying more. In addition while non of them will tell you this every single one of them at this point is adding additional internal requirements not mandated by the secondary market that do little more than add aggravation, time and occasionally additional expense to the transaction.

Another good option if you have access to it is a local credit union or a small local bank.

In order to really get pre-approved (which puts you as the buyer in the strongest strategic negotiating position) the lender will need to pull all three credit scores, as well as review and confirm your past two years of tax returns, employment history and will need to see 2-3 months worth of bank statements.

You may want to simply shop general terms and rates understanding that until you authorize them to run all your credit scores etc there's really no way they can give you a hard quote. Many lenders will simply pull one score to get an idea and this is a "soft" credit pull, but to get pre-approved it will require all three credit scores to be pulled and if you do this too often it can in fact lower your credit score a little.
1 vote Thank Flag Link Thu Feb 28, 2013
Good afternoon charleslanza,

First steps:

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Get a referral to a good, local, real estate attorney. Call the attorney, retain the attorney so you have her information handy when you make an offer. Having that information at time of offer helps you demonstrate to the Seller how serious you are, and they will consider your offer with more interest.

Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

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0 votes Thank Flag Link Wed Apr 24, 2013
Also..working with someone who is in NY state.
0 votes Thank Flag Link Tue Mar 19, 2013
Hello Charles,

You got to go with a mortgage pro that someone worked with and they had a really good experience
(and it's not their relative...).

In a case of a large bank - they have the "front" (which is a sales person), and they have the "inside" (which is an underwriter/decisioner). These two parts don't communicate well. The sales person is super sweet, promises the world to you, but knows little about underwriting - that's a recipe for a trouble.

And - banks only have a few programs to offer - unlike the mortgage broker.
One day - a particular bank has a better rate, then another (once they get a lot of business) they are not so good.

A mortgage broker will have more options and they have the power to pay more attention to your transaction, and they can even reduce their commissions in some situations.
That said, go to the mortgage broker who was previously tested by people you trust.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
305-904-2355
0 votes Thank Flag Link Tue Mar 5, 2013
I would always use the broker (personal bias). The reason is brokers most of the time can beat the bank in rate and fees.


Sean Cochran
http://www.qmlending.com
630-470-6830 office
630-330-2229 cell
0 votes Thank Flag Link Tue Mar 5, 2013
Mortgage Brokers typically have a good relationship with several lending institutions. They are able to shop around for the best rate for you. As far as fees and such, the lending institutions typically will give the broker a discounted rate which will in turn absorb these fees. As far as running a credit report, there is no way around this. I would just make sure that you are happy with your broker before allowing him to run the report because if you run too many it will begin to affect your credit. Hope this helps.
0 votes Thank Flag Link Tue Mar 5, 2013
Hi Charles Lanza

I would try first with the bank I do business, then make some calls to both banks and brokers,
check their fees etc. that apply to the loan you are requesting.
REgarding checking your credit score that is a must.

Good luck
0 votes Thank Flag Link Thu Feb 28, 2013
Try your bank that you do business with first. Then call some banks and brokers for the best rate
Your credit score is a must for a loan, the better your score is, usually you will get a better rate.

Good luck to you
0 votes Thank Flag Link Thu Feb 28, 2013
Shop around both, use the loan officer you like best and has the most to offer; banks and brokers have different fees/charges; generally they will need to run your credit, however you are allowed to to have your credit run a few times for mortgage loan puropses without impacting your score.
0 votes Thank Flag Link Thu Feb 28, 2013
Ditto, use a mortgage broker,....don't let your shadow fall upon the lobby of a big bank!

Larry provided excellent guidance. Please note his reference to a local credit union. Credit Unions are 'hands-down," the lowest cost providers of home loans.

Next, as Larry suggested, look at smaller, local banks who have a historic record of supporting the local economy through small business and home loans. Find an "a" or "b' graded here:
http://www.BankingGrades.com
Note all the 'too big to fails' are "F" rated.

Best of success to you.
Annette
0 votes Thank Flag Link Thu Feb 28, 2013
My I ask, why would you think that a mortgage broker not run your credit background?

A quote means very little, but getting prequalifed for a mortgage loan is the Big first step.

Prequalifed for a loan allows greater understanding of the loan process and lets you know exaticly the amount of a motgage loan you are qualified to borrow. Than you can go home.shopping with confidence

Best of luck to you
0 votes Thank Flag Link Thu Feb 28, 2013
Charles,

Please visit the link below to receive an "Instant Rate Quote." As long as you have any idea of your credit score you can get a reasonably accurate quote. Of course you have to remember that rates change everyday (sometimes multiple times during a day). So the best advice I can give is to find someone you trust and that you feel has your best interests at heart.

http://www.NYSmortgagerates.com/RateQuote.html

Best regards,
Will Knoop
646-552-2531
0 votes Thank Flag Link Thu Feb 28, 2013
You should use a mortgage broker as they have access to different banks and shop for best rate for you.They also will give you a good recommendation with which program to go that suits best your needs. If you have any further questions feel free to call me .Anybody that will give you a valid pre-approval has to run your credit.

Bella Grossman
Licensed Real Estate Associate
SI Dream House Real Estate
Office: 718.980.2100
Cell: 917.804.6638
BellaG6@aol.com
0 votes Thank Flag Link Wed Feb 27, 2013
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