how can I determine if possible refinance lenders are reputable?

Asked by Ray, Carnegie, PA Mon Oct 11, 2010

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Desari Jabbar, Agent, Stone Mountain, GA
Tue Oct 12, 2010
Consider getting a referral from family members, friends, or co-workers. Or perhaps, the realtor who sold you your home.

Best of luck to you!
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Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Mon Oct 11, 2010
Kevin, I guess that is as much of an oxymoron as an honest real estate broker.
Ray, the best thing to do is ask friends or relatives who they have used that they are happy with. That is how I get most of my clients, through referrals from past clients, not to mention those who come back to me because they know what I did for them the first time around.
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Vincent Vill…, Agent, San Diego, CA
Mon Oct 11, 2010
Hi Ray,

When you say " reputable" I am assuming you mean a lender that wont over charge you for fees, origination, rebate is that correct?

Thats a great question. If you go directly to your big national bank the loan officers typically makes a salary and a very small bonus for loans..they will get paid whether you do a loan with them or not.

Then, there are MORTGAGE BROKERS, they do not make a salary they earn a commision on the refi/purchase loan they originate for you. They make money two ways REBATE or example of REBATE is if the par rates are 5% they can actually give you 5.375% rate which would approximately put $3000.00 in their pocket as commision. then they will charge you ORIGINATION pts. Mortgage brokers typically will charge you 1% so on a $300,000.00 transcaction they will put another $3000.00 in their pocket. So at the end of they day the mortgage broker check will be $6000.00 that U PAID Thru REBATE AND ORIGINATION. This scenario is very typical I have seen mortgage brokers charge 3% on rebate and 2% on origination you do that math, its mind boggling.

The temptation for overcharging in mortgage brokering is very great especially if that particular mortgage broker is having a slow month. So take your pick Big bank where the loan officers make a salary or Mortgage Brokers where they make money on your transaction. I am sure there are mortgage brokers that are reputable out there but put that mortgage broker in slow month then they can literally choose your rate and fees.

Vincent Villafranca
Prudential CA Realty
940 Eastlake Parkway
Chula Vista CA 91914
direct: 619 972 8798
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Ruth McMaste…, Agent, NC,
Mon Oct 11, 2010
Oh One other thing to follow up with, I would agree with staying local and staying away from online lenders.
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Ruth McMaste…, Agent, NC,
Mon Oct 11, 2010
I was in the Mortgage industry for over 35 years before I got into Real Estate. I have seen the gamut of good and bad lenders. There are good lenders(Loan Officers) out there as well as unreputable lenders (Loan Officers) . It also depends on your state and their liciensing requirements. I would first check with the state Licensing Board before you choose a lender. I would ask about complaints as well as I would ask how long they had been licensed. Now Loan officers in all states are required to be licensed throught the National Licensing System. Each state still has their own requirements for licensing, some are more strict that other.

In reading the other responses, I would have to say even Loan Officers at Local banks have been caught in the past as doing unethical transaction. So just because they work for a local bank, still check out their licensing.
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Scott Miller, Agent, Boca Raton, FL
Mon Oct 11, 2010
Hi Ray. Kevin's right about who to stay away from, but what about speaking to local banks in your area of PA? I'd stay away from online lenders and any of the BigBadBanks that created this mess, but I would try to track down a refi locally first.


Scott Miller, Realty Associates, Boca Raton, FL
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Mon Oct 11, 2010
Hello Ray,

Reputable Lender is an oxymoron. (I have to throw a shot in when I can ;))

They should have past clients that have given them permission to use as references. Looking up to see if someone is licensed and/or has any complaints is a step you can take, but there are many people who have just never been caught doing underhanded things.

Past clients is the best way to learn from reputation, unfortunately the list you get is only going to be of the clients that "would use them for any kind of lending transaction every day of the week".

I would stay away from all online lenders, and will leave it at that.

Good luck to you,

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