I am a first time homebuyer. I signed a buyer broker agreement with my real estate agent who works for a

Asked by Jet23, Long Beach, CA Sat Aug 23, 2008

mortgage broker. The buyer-broker agreement is under the name of the finance company. does this mean I also have to get my loan thru them? i am trying to get a higher loan through someone else.If i get a loan through someone else, but still use my realtor as an agent, it does not mean i breached my contract, correct?

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Ute Ferdig, Agent, Newcastle, CA
Sat Aug 23, 2008
A mortgage broker has the same license as a real estate broker and a mortgage broker can sell real estate and do mortgages at the same time. Just by signing the buyer broker agreement for the purchase of the house, you are not obligated to also get your loan through this same broker. You are free to shop around, but I would recommend that you choose a local mortgage broker that is familiar with your real estate market. If you get several quotes from different mortgage brokerages, make sure that their good faith estimates are based on comparable products. Many buyers think they are getting a better rate without realizing that the loan with the lower rate came with higher closing costs. I am not sure why you think that you'll qualify for a higher loan with another broker. The other broker will look at the same financial information and how much of a loan you qualify depends on your debt to income ratio, which does not change by going through a different broker.
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Scott Godzyk, Agent, Manchester, NH
Sun Aug 24, 2008
A real estate broker can not MAKE you use any services including getting a mortgage through their own firm. The real estate commission frowns on this heavilly and will come down like an iron fist. He has to have you sign a diclosure of releated businesses if he or his company are affiliated, partnered or owned by the same person or entity. Check to see if the name of the realtors office is teh same as the mortgage company. If it is different it should be in the name of the real estate company. Good luck with your purchase
Web Reference:  http://www.ScottSellsNH.com
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