When you use a mortgage broker- Who pays?

Asked by Jessica, Los Angeles, CA Wed Aug 13, 2008

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Richard Schu…, Agent, Los Angeles, CA
Thu Jan 6, 2011
You can pay him, the seller can pay your closing costs or the lender can do it for free. In the first two instances, remember that you are the buyer and you pay for everything in the end. In the last instance, remember that the lender will probably charge you a higher rate to do a no fee loan...so again, you.

Let me know if you have any questions.


Richard Schulman
#1 Listing and Selling Agent
Keller Williams West LA
0 votes
Voices Member, , Red Wing, MN
Wed Jan 5, 2011
When you use a Mortgage Broker you may pay all of the fees, or the lender will pay all of the fees or you may pay some and the lender may pay some.
Where you may save is that a Mortgage Broker may be able to find a loan for you that a local bank doesn't offer or you can't qualify for. Also Brokers get loans at a wholesale rate instead of the retail rates that Banks charge the people who come into their brick and mortar buildings. They may be able to pass along those rates to you.

Sean Wait
Senior Loan Officer
Spectra Financial Home Mortgage
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Ed Evans, , Beverly Hills, CA
Wed Jan 5, 2011
I assume you mean on a purchase... Closing cost also includes the point(s) on the loan, so what you need is a Real Estate Professional to negotiate your closing cost right into the deal leaving you with little, comparatively speaking, to maybe nothing to pay at closing...How? A Real Estate Professional such as myself, may be able to get the seller to pay your closing cost... I usually don’t have a problem making that happen...

Click my name

to contact me... But, only if you are not in contract with another agent ... How exciting; where are you looking and what price range?
Ed Evans
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Yana Galuz, Agent, Woodland Hills, CA
Wed Nov 10, 2010
Usually when you using a mortgage broker you are paying the fees. If you go direct you may have no origination fee but doesn't mean you will get the best rate, etc. There are also ways a mortgage broker can get paid on the back end but you may not see those fees, either way you end up paying. I would recommend doing both and see where you get the best deal.

ana Galuz
Senior Associate
Crescent Realty

12345 Ventura Blvd. Ste M
Studio City, CA 91604
(310) 595-5522 Direct
(818) 980-5040 Office
(818) 980-5020 Fax
0 votes
, ,
Mon Jul 20, 2009
What is your question, who pays the points, closing costs? You
It doesnt matter if you will use a mortgage broker or a bank direct, you will still pay the fees.

Sorry to tell you that.

Good luck.
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Richard M. J…, , Sherman Oaks, CA
Mon Jan 19, 2009
Hi Jessica,

That would depend if your mortgage broker is charging you a point. You can find out what is the interest rate at par and how many points the mortgage broker is charging. Avoid any mortgage broker who is charging more than one point. This point is either paid by your or the lender who is giving you the money. Be sure to review the good faith estimate for accuracy and make sure the mortgage broker locks in the loan rate when you find a home because you don't want another person to gamble with your money.

One mortgage broker I can recommend is Tom Cortesi with Home Services Lending. Tom's website is here: https://www.homeloans.com/loans/tom-cortesi/index.page

Richard Johnston, Rodeo Realty
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Kim Pape, Agent, Santa Clarita, CA
Mon Aug 18, 2008

When you use a mortgage broker, you may be charged a orgination fee along with a processing fee, but you can still be charged this when using the bank directly. There will always be fees when getting a mortgage loan. When you put in a offer on a home, ask for the seller to credit you either all or some of the closing costs. What you are looking for in a mortgage broker is the lowest rate for the lowest fees. Mortgage brokers are able to shop around and go to hundreds of different banks to find you the best deal. When you walk into the bank and ask for a loan, they just tell you what it is with no choices. Never pay more than 1% orgination fee for a loan. You can also ask for a good faith estimate so you can see what the charges might look like.

Any more questions, feel free to call me and I can explain more. Remember you are working as a team with your Realtor, lender, and yourself.
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David Krecker, Landlord, Whittier, CA
Thu Aug 14, 2008
Whatever can be negotiated between buyer and seller and lender. Conatct me and we can discuss some options.
Web Reference:  http://www.centuryside.com
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M.D.J, , Los Angeles, CA
Thu Aug 14, 2008
Whether you use a mortgage broker, mortgage banker, bank or credit union you pay. Because none of them are free. All of them on any given day can have a better rate or fees.

If you need more info. on the matter let me know and good luck to you.
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Yona Bello, , Studio City, CA
Wed Aug 13, 2008
Jessica - if you have good credit, you can go to a direct lender, like Wells Fargo. Go to your banking institute first and see what they offer youor check out programs at your work, like a credit union which will offer more for their employees.

In the absence of any of the above and depending on the location of your purchase, you might ask in your offer that the seller pay up to 3% of your non-recurring closing costs, which should cover your loan fees.

Good Luck!
Yona Bello
Web Reference:  http://www.YonaBello.com
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Bob McClure, Other Pro, Walled Lake, MI
Wed Aug 13, 2008
good evening jessica......i have done low risk, high risk, and tough comlicated mortgage financing for almost 14 yrs......pls call my personal cell no. anytime ..i'll be glad to advise you.........you don't have to pay me anything.....i can "un-complicate" things for you....best regards.....bob mcclure- mortgage now- farmington, michigan.i am licensed in your state and 18 other ones......i can also close you in your own backyard.....
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Wed Aug 13, 2008

The buyer pays the points to the broker, either up front or through a higher interest rate on their loan. Mortgage brokers also usually have higher fees across the board. Of course if you negotiate it, you could get the seller to pay this, but this is a negotiation and not standard business practice.

I have a different opinion than my colleague. If you have great credit then going with a direct lender will usually save you money (both in up front fees and over the life of the loan) and speed up the funding process. You should comparison shop, at the very least. Also, if you are a first time homebuyer, not all lenders know all the programs you might qualify for. If you want more information on these programs and some guidance on finding a lender to help you, please feel free to contact me.

Good luck in finding a great home at a great price and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
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Dot Chance, Agent, Burbank, CA
Wed Aug 13, 2008
The buyer usually pays for the mortgage broker. However, my opinion is that a mortgage broker usually can offer you more options than a direct lender because they deal with so many different direct lenders and investors.

All my best,
Dot Chance
The Chance Team
Keller Williams Realty Studio City
818 339 7712
Web Reference:  http://www.DotChance.com
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