Home Buying in New York>Question Details

mkerr, Home Buyer in Scarsdale, NY

Working with 2 mortgage brokers?

Asked by mkerr, Scarsdale, NY Mon Dec 3, 2012

I am working with two brokers to try to get a letter of commitment. I decided to go with one and now I feel that he doesn’t feel that there is any competition so the fees and rates aren't as good. Even though he has submitted the paper work, can I go back to the other broker?

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Answers

12
You can but you're slowing the entire process down and I'm assuming you have a contract date you're trying to hit.

I also doubt that your broker is thinking that there's no competition, the mortgage industry is hyper competitive and rates and fees are more likely predicated on your credit score (as well as how much your putting down, your debt to income ratio etc)

If you've got a contract and are expected to close within the next 6 weeks then the time to start shopping rates is past, you should have done this beforehand. Also if he's submitted paperwork I'm assuming you've alreadyt paid him the application fee which would typically be non-refundable.

If you're simply trying to get pre-approved then there's no reason in the worl you couldn't and shouldn't speak to other lenders.

I wish you all the best and hope things work out well for you.
0 votes Thank Flag Link Wed Dec 5, 2012
Thank you! we have shopped rates beforehand. they offer you very competive rates until the day you submitted your application and wanted to lock in the rate, their rate went up. We have more than 85 days to the closing now.
Flag Wed Dec 5, 2012
Sorry, i wanted to say is to choose a lender after i get a commitment and a better lock-in rate, not wait 3 or 5 days before closing. Did not mean to waste anyone's time, just try to seek the best deal for us.
0 votes Thank Flag Link Wed Dec 5, 2012
Mkerr, not one single agent gave you the advise to work with two loan officer simultaneously. Be careful that you are not hit with a penalty from the lender you walk away from at that last stage. Your approach respectfully is foolish and wasting people's time not to mention your money.
0 votes Thank Flag Link Wed Dec 5, 2012
Sorry, i wanted to say is to choose a lender after i get a commitment and a better lock-in rate, not wait 3 or 5 days before closing. Did not mean to waste anyone's time, just try to seek the best deal for us.
Flag Wed Dec 5, 2012
Thank you everyone for your expertise.!

We are applly for a Jumbo. Even 1/8 rate change would have a impact on the monthly payment, not to mention the saving for every year or over 30 year.

If I understand correctly from you, my plan is to work with both of them for 2 commitments, and pay 2 apprails and 2 application fee, then pick one whoever offers best rate 3 or 5 days before the closing. Does that work?

Many thanks again!
0 votes Thank Flag Link Wed Dec 5, 2012
If I may be frank, Make a decision and stick with one broker because in your case it appears that you are looking at numbers rather than service. That being said the overall expense and rates are typically not going to be significantly different for the same type of loan. Even with a good faith estimate (GFE), the average buyer cannot decipher the comparisons accurately. You would need to not only look at the overall total initial expense, but also the long term cost of what you are borrowing. How far have your gone with your application? If you are say you are waiting for a commitment, that tells me you would have already have spent money for an appraisal at least and money down the drain already as you will most likely new lender want their own. But at the same time your last sentence indicate that you are at the beginning of the process so you would be no where not near a commitment at this time. Yes you can change but bouncing back and forth is not going to do you much good. Remember rates change several times a day, every day, don't be sold on rate, be sold on service. Good luck.
0 votes Thank Flag Link Tue Dec 4, 2012
The rate and Fees are only two aspects of the LOAN:
Did you get their GFE's so that you can really compare?
You may be better off with the higher rate; you need to see all the numbers.
If you don't understand what you are looking at; ask your Realtor to help you.
0 votes Thank Flag Link Mon Dec 3, 2012
Your not tied to anyone until you go to the closing table. But it will likely delay your home purchase by switching.
0 votes Thank Flag Link Mon Dec 3, 2012
Thank you for your expertise.!

We are applly for a Jumbo. Even 1/8 rate change would have a impact on the monthly payment, not to mention the saving for every year or over 30 year.

If I understand correctly from you, my plan is to work with both of them for 2 commitments, and pay 2 apprails and 2 application fee, then pick one whoever offers best rate 3 or 5 days before the closing. Does that work?

Many thanks again!
Flag Wed Dec 5, 2012
Yes for sure you can go back to the other broker, you are not locked in with any mortgage broker, so go with who you think is going to give you the best deal and the best interest rate always. If you need anything else feel free to email me at: jodi.machardy@elliman.com
0 votes Thank Flag Link Mon Dec 3, 2012
Hello. There is always going to be a better deal out there. I suggest that you make sure that you are not pushing the time limit, as stated in your contract. Pick the best one, and prepare for your move.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.


Wishing you all the best,

De Vonte Williamson , LSA
Proudly Serving Long Island
Coldwell Banker Residential
(631)384-3695
http://cbmoves.com/DeVonte.Williamson
http://devontesellsny.wordpress.com/
DeVonte.Williamson@cbmoves.com
"I Stand Behind Getting You Results!
0 votes Thank Flag Link Mon Dec 3, 2012
Depends on far along you are, therefore review your contract, or consult with your attorney regarding any deadlines that must be met...
0 votes Thank Flag Link Mon Dec 3, 2012
Ask your mortgage broker what banks he submitted your paperwork to. If both brokers work with the same banks it does not really make sense to duplicate the efforts and these banks would already have your info. You can check direct lenders that do not work with brokers now, Wells fargo, city, etc. I d be glad to provide contact info for the lenders that worked with my clients.
0 votes Thank Flag Link Mon Dec 3, 2012
What you have to be careful with is the deadline in your contract to get your mortgage commitment. Going back and forth can delay you especially if they are working with a slow lender.

Chris
0 votes Thank Flag Link Mon Dec 3, 2012
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