Home Buying in 02171>Question Details

Angie, Home Buyer in Quincy, MA

Should I use a mortgage broker? or should I talk to the lenders/banks directly? Will brokers find better deal?

Asked by Angie, Quincy, MA Fri Jan 30, 2009

Also, what do you think about online mortgage such as lendingtree.com? I have good credit (over 760), will put a little over 25% down payment on a condo (purchase price 207000). Thanks.

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Hi Angie

I wouldn't waste your time on lending tree. The most important factor in my opinion is that you work with someone local and reputable. That could be a broker or a bank. Interview one of each and select the one you feel most comfortable with (note: this is not always the one with the lower rate). A good lender will have knowledge of the local market, a good reputation (get referrals from friends,family,or your agent) and will offer competive rates and fees.

You never know what you will get on L-tree, and with a purchase you don't really want to chance things. "When banks compete, you win" is not really the truth. When it comes down to it and you are sitting at the closing table it doesnt matter what you were quoted. You'll have to suck it up and close anyway. When you work with someone reputable you decrease your chances of surprises at closing because good lenders tend to do a good job of estimating your total cost.

Best of luck!
1 vote Thank Flag Link Wed Feb 18, 2009
Hey Angie, what matters is that the person is reliable and trust worthy. Ask firends and family and test people by seeing how long it takes for them to get back to you. If they dont get back to you right away then usually the dont care enough to be handling your loan. good luck!

1 vote Thank Flag Link Wed Feb 18, 2009
You should shop around for the best price and terms with both lenders and brokers, and you should let them know that you're shopping around for the best price and terms. Also, unless you already have a property under contract, you should also consider asking for seller financing--after all, you could end up with even better price and terms funding your deal that way.
1 vote Thank Flag Link Sat Jan 31, 2009
Compare apples to apples .

Mortgage broker could offer more types of loans than just a lender with only one or two opp's for you

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Mon Mar 28, 2011
You should work with a local mortgage broker who is knowledgeable and reputable. Mortgage brokers have access to a number of different lenders and mortgage programs, and can find one that best meets your needs. Banks usually have a limited number of products and can't always provide the mortgage that you need. Most times, banks tend to be a little higher in rates and fees.

As for Lending Tree, you will get offers from several different lenders/brokers. They could be from anywhere in the U.S. And, they don't always offer the best deals.
0 votes Thank Flag Link Mon Mar 28, 2011
I am a mortgage broker so my answer is biased.

Choose a mortgage broker you trust and can have a good relationship with. One of my lenders closed this week(see: http://www.trulia.com/blog/david_chamberlain/2009/02/barclay… ), if your loan was with that lender you would be out of luck but because I am a mortgage broker I immediately started working on getting another lender. Because I did not have enough time to close with a new lender I called the Realtor and started working on getting the contract extended.

Obviously banks and lenders don't close down all of the time but I wasn't limited to only working with that lender.
0 votes Thank Flag Link Wed Feb 18, 2009
My best advice for you is to shop around, When speaking with any lender/bank always request a "good faith estimate" that explains in writing the program and closing cost fees.

Best of luck!!
0 votes Thank Flag Link Sat Jan 31, 2009
Hi Angie,
The only thing I can add to what has already been said is to be careful with online companies like lending tree. They simply take your information and send it to several banks/brokers. The problem here is that all of these lenders pull your credit report and eveytime that your report is pulled your score goes down a little. Find a bank or broker that will pull your credit and then get a copy of it to shop around. Best of Luck!
0 votes Thank Flag Link Sat Jan 31, 2009

Judy is right on the mark......our recommendation is to get out there and find out about the best programs and rates for you.

Finding a funding source is a lot like finding a home with many possibilities to consider. Our best advice is to become as informed as possible about this process from each source before making a decision.

When speaking with an agent always request a "good faith estimate" that explains in writing what they have quoted you for rate and program.

Good luck
0 votes Thank Flag Link Sat Jan 31, 2009
Hi Angie,

I want to disclose that I am a Realtor and can only provide opinions and suggestions about financing.

My OPINION is that you should talk to a mortgage broker AND individual banks, mortgage companies and credit unions. In essence, you should go mortgage "shopping".

My SUGGESTION is that you ask for a list of fees and closing costs. In some cases, a mortgage broker can find you the best rates and terms, but you will be charged a "brokerage fee".

No matter who you speak with, you should feel comfortable, relaxed and that all of your questions are being answered to your satisfaction. I can provide you with some names in your area if you'd like.

As for internet companies, I urge you to remember, "IF IT'S TOO GOOD TO BE TRUE, IT PROBABLY IS!"

0 votes Thank Flag Link Sat Jan 31, 2009
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