Hi, I'm a first time home buyer, and was just introduced to a mortgage broker through a trusted coworker. Do?

Asked by Jane, Brentwood, CA Tue Dec 30, 2008

you get better rates through a trusted mortgage brokers or buy asking several banks directly and play it off of each other?

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Tony Abad, Agent, El Cajon, CA
Tue Dec 30, 2008
Competition is good. Don't feel bad about shopping around. Compare apples to apples. For example: Compare a 5 yr ARM to a 5 yr ARM and not a different loan (like a 30 yr fixed). Also look at the APR. If you need more help, I live here in Brentwood, please call 925/325-9546 or email.

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Tara Steinke, Agent, San Diego, CA
Tue Dec 30, 2008
Dear Jane,

Talking to a couple of different brokers is definitely a good idea. I would have your credit pulled by one broker only and then let the other broker/banks know your current credit scores to run a loan rate/fee quote. When shopping different lenders you should have each one prepare a complete good faith estimate of the lending fees. Have them leave out "estimated escrow fees" as that could make it more confusing to discern what is specifically included in their fee structure. Compare overall cost (i.e. fees) in addition to the rate and payment estimate. Look for junk fees such as extra processing fees, etc. They should also be able to provide you with an APR.... this rate reflects the total cost of the loan. The APR allows you to directly compare apples to apples when shopping your loan.

I'm a real estate agent not a loan broker and the above is based on my experience representing buyers in the residential market. I do have an excellent referral for a broker that I know clearly lays out the options (rate vs. fees) and does loans for much less than most brokers will do. Let me know if you would like me to get you in touch with him.

I also know some great agents in the Brentwood area if you are not already working with someone.

Best of luck!

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Dallas Texas, Agent, Dallas, TN
Tue Dec 30, 2008
You have right to shop your loan however keep in mind when you speak with loan officers they pull your credit your scores do drop. When you are working with these varies companies place all on excel spread sheet compare "apples to apples" many believe they are receiving a better deal however did not review all particulars.
Web Reference:  http://www.lynn911.com
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Eric H. Wong , Agent, Albany, CA
Tue Dec 30, 2008
Looking for a loan is kind of like looking for a car. Go and see a direct lender too, and see what they can do for you. It may also be worth speaking to another broker, just to cover all your bases.
Be aware though, each time these guys look at your credit, your FICO score takes a little hit.

Good Luck
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Voices Member, , Benton County, OR
Tue Dec 30, 2008
Jane, All mortgage brokers were not created equal and shopping around to compare rates, fees,ect..
is always a good idea. Your friend may prove to be correct, but it would still be wise to compare reputable lending sources..

You might find this helpful..http://www.ofheo.gov/PublicInformation.aspx?Nav=136
It is a gov. site and has a lot of mortgage information, predatory lending info, how to check for complaints against a lender and consumer information.

This is the Gov. site listing all gov. loan programs and will take you through the process of seeing if any of them will fit your needs.

Best of luck, Dunes
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