Homebuyers: Did you use a broker to help secure a mortgage?

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totallynotsure
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Homebuyers: Did you use a broker to help secure a mortgage?

Post by totallynotsure » Tue Jul 28, 2020 12:39 pm

if so, did you find it helpful?

if not, why?

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JoeRetire
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by JoeRetire » Tue Jul 28, 2020 12:40 pm

No. I just called around and found the best deal.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.

jarjarM
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by jarjarM » Tue Jul 28, 2020 12:42 pm

Nope, depending on your mortgage amount, there's a couple of threads on the forum right now that could help you find the best rate. The refinance mega thread (conforming or super conforming) or the relationship mortgage thread (mostly for jumbo).

We recently refinanced and the best rate was actually from Schwab's relationship mortgage, 2.375% for 10/1 ARM on jumbo.

Topic Author
totallynotsure
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by totallynotsure » Tue Jul 28, 2020 1:15 pm

jarjarM wrote:
Tue Jul 28, 2020 12:42 pm
Nope, depending on your mortgage amount, there's a couple of threads on the forum right now that could help you find the best rate. The refinance mega thread (conforming or super conforming) or the relationship mortgage thread (mostly for jumbo).

We recently refinanced and the best rate was actually from Schwab's relationship mortgage, 2.375% for 10/1 ARM on jumbo.
jumbo loan in the amount of $500-$600K.

which thread would be better suited?

thanks.

jarjarM
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Joined: Mon Jul 16, 2018 1:21 pm

Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by jarjarM » Tue Jul 28, 2020 1:28 pm

totallynotsure wrote:
Tue Jul 28, 2020 1:15 pm
jarjarM wrote:
Tue Jul 28, 2020 12:42 pm
Nope, depending on your mortgage amount, there's a couple of threads on the forum right now that could help you find the best rate. The refinance mega thread (conforming or super conforming) or the relationship mortgage thread (mostly for jumbo).

We recently refinanced and the best rate was actually from Schwab's relationship mortgage, 2.375% for 10/1 ARM on jumbo.
jumbo loan in the amount of $500-$600K.

which thread would be better suited?

thanks.
Best to use the refinance mega thread, there's many ppl sharing the rates based on either from mega bank or online mortgage firms. That should help guide you to the direction you want to go.

jimbojones
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by jimbojones » Tue Jul 28, 2020 1:32 pm

totallynotsure wrote:
Tue Jul 28, 2020 1:15 pm
jarjarM wrote:
Tue Jul 28, 2020 12:42 pm
Nope, depending on your mortgage amount, there's a couple of threads on the forum right now that could help you find the best rate. The refinance mega thread (conforming or super conforming) or the relationship mortgage thread (mostly for jumbo).

We recently refinanced and the best rate was actually from Schwab's relationship mortgage, 2.375% for 10/1 ARM on jumbo.
jumbo loan in the amount of $500-$600K.

which thread would be better suited?

thanks.
I found many more options and lower rates with a conventional loan (max $510,400 in my area). Many banks weren’t even offering jumbo loans.

p_qrs_t
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by p_qrs_t » Tue Jul 28, 2020 2:03 pm

I've used Costco mortgage brokerage and gotten good rates. But they were all conventional sized loans or refinances.

Hopefully I'm done with those days.

Northern Flicker
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by Northern Flicker » Tue Jul 28, 2020 2:19 pm

A few comments:

1. If you shop rates, you have to compare APRs to get an apples-to-apples comparison. Most mortgage originators obfuscate that until you get the truth-in-lending statement by publishing interest rates and origination costs separately.

2. For a refi, there is not a deadline, so it does not matter if things happen in a timely manner, but for a home purchase, a mortgage broker is incentivized to go the extra mile to ensure that the ducks are lined up in time for closing because they are usually compensated only on a commission basis. A bank may have salaried employees who don't have any skin in the game if the loan documents are late. I think banks have gotten better with respect to this issue over the last 15 years. And you are not saving a commission by using a bank directly-- the bank is interested in the origination fee for their profit.

3. You can negotiate with a mortgage broker on the origination fee, but probably not in the current interest rate climate. A hungry mortgage broker might lower their commission if they want to be more competitive for the business, but they are likely swimming in refi business right now.
Risk is not a guarantor of return.

orangesherbet
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by orangesherbet » Tue Jul 28, 2020 2:31 pm

In the past I have included my (known and vetted) mortgage broker in the shopping process - ie I invite them to give me their best rate while I shop online myself. In my experience they offered some customer service and can offer some guidance if there’s something out of the ordinary in your documentation. If they turn out to have the best rate I will give them my business. If someone else has a better rate I let them know and move on.

Topic Author
totallynotsure
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by totallynotsure » Tue Jul 28, 2020 3:01 pm

the amount will be $500-$600K (likely jumbo) on a 30-year fixed with a 80/20 LTV.

local credit union quote is 3.125% with $12K in closing costs.

Alliant CU has it at 3.375% with $12K closing costs.

do these sound like decent rates? can we do better? again, total noob here so any advice appreciated.

jimbojones
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by jimbojones » Tue Jul 28, 2020 5:22 pm

totallynotsure wrote:
Tue Jul 28, 2020 3:01 pm
the amount will be $500-$600K (likely jumbo) on a 30-year fixed with a 80/20 LTV.

local credit union quote is 3.125% with $12K in closing costs.

Alliant CU has it at 3.375% with $12K closing costs.

do these sound like decent rates? can we do better? again, total noob here so any advice appreciated.
Better.com and Ally.com will give you quotes without running your credit. Test conventional loan amount and jumbo loan amount. With excellent credit, I would think 3% (or lower) 30-year loans are still available.

Big Dog
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by Big Dog » Tue Jul 28, 2020 5:54 pm

orangesherbet wrote:
Tue Jul 28, 2020 2:31 pm
In the past I have included my (known and vetted) mortgage broker in the shopping process - ie I invite them to give me their best rate while I shop online myself. In my experience they offered some customer service and can offer some guidance if there’s something out of the ordinary in your documentation. If they turn out to have the best rate I will give them my business. If someone else has a better rate I let them know and move on.
Bingo! In our case, a broker was a college alum and he was rebated xx fees or made a donation to the college in [my] name for that amount; program offered only to alums. So, he did the last two no-cost refi's. But I always called around a dozen or so places before contacting him so I knew what the going rate was.

ScaledWheel
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by ScaledWheel » Tue Jul 28, 2020 6:23 pm

Basically no algorithms that I've found are accepting jumbo mortgages at less than an 80/20 LTV, so we are going through a broker. Will know soon whether or not this is successful. This is also common in our metro with lots of areas having home prices where a 20% down payment would still be well into jumbo territory. Having a broker that has the local relationships seems to be helping.

Mako
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Location: MD

Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by Mako » Tue Jul 28, 2020 6:46 pm

jimbojones wrote:
Tue Jul 28, 2020 5:22 pm
Better.com and Ally.com will give you quotes without running your credit. Test conventional loan amount and jumbo loan amount. With excellent credit, I would think 3% (or lower) 30-year loans are still available.
Aimloan.com also provides a quote without having to enter any personal info.

When I refi'd last year I sent a screenshot to the broker I'd used before and said if he could match I'd use him, he said I should take the online offer.

Topic Author
totallynotsure
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by totallynotsure » Wed Jul 29, 2020 6:47 am

Ally doesn't offer digital rates in NY.

Aimloan was similar if not a bit worse to the 2 quotes i already got.

i'll poke around some more!

redmaw
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by redmaw » Wed Jul 29, 2020 8:39 am

When I bought my house more than a decade ago now, I used the broker my realtor recommended. They checked around and said wells fargo had the best rates for me and offered me that loan. I checked a number of places, including directly with wells fargo, and I could not match the rate the broker gave me. I did not check the online mortgage companies, at the time they seemed somewhat sketchy to me and my realtor discouraged it.

Northern Flicker
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by Northern Flicker » Fri Jul 31, 2020 2:11 pm

totallynotsure wrote:
Tue Jul 28, 2020 3:01 pm
the amount will be $500-$600K (likely jumbo) on a 30-year fixed with a 80/20 LTV.

local credit union quote is 3.125% with $12K in closing costs.

Alliant CU has it at 3.375% with $12K closing costs.

do these sound like decent rates? can we do better? again, total noob here so any advice appreciated.
You have to compare annual percentage rate (APR). $12K in closing costs adds more to the APR when it is factored into a $500K loan than when factored into a $600K loan. Thus it is not possible to evaluate the loan product without knowing either the closing cost as a percentage or the actual loan amount.
Risk is not a guarantor of return.

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Artful Dodger
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by Artful Dodger » Fri Jul 31, 2020 2:35 pm

My last three (and hopefully my final) refinances were through a broker. I think around 2005/2006, I was looking to refinance, and checked some local lenders. One of these was my current bank. We are in southern Illinois, and our local bank was headquartered in Wisconsin, but had a presence in four states. I also filled out an online form, and was given a number of quotes, at least one of which were from a broker in the Chicago area. My surprise was the Chicago area broker offered us a loan from our local bank at better terms than what we had received from the local branch. When I called and asked the branch president how come we were getting a better deal from the out of town broker, they told us the Chicago area division management were able to offer better rates through this broker. We kept in contact, and redid our financing twice more, at no cost as the broker negotiated down and/or covered the closing costs, and gradually lowered the payback period to 10 years, which will pay off September 2021.

I expect I could have got similar rates by shopping around, but I don't know. The broker had relationships with multiple lenders, and knew when they could negotiate quoted fees / points, and reduce the published loan rates.

stupidkid
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by stupidkid » Sat Aug 01, 2020 10:15 am

I've used a broker three times (same one twice) and a direct online lender once. I looked for the best rates online, never called around locally. Turns out the brokers were local but that was coincidence.

My direct online lender experience was very difficult. They required a lot of documentation, the process was opaque, and lengthy. My broker experiences by contrast were relatively seamless. My last refinance there was some confusion/mistake on the lock and I had to pay points unexpectedly (not a lot). The broker cut me a check and sent me a gift card after closing to cover the unexpected cost. My finances aren't a simple w2 and they knew how to navigate the lending process to get my paperwork through.

I'm sure a bank would be fine but I had a very positive experience with a broker, they were actively working on my behalf to make their money. Another perk, I'm typically very busy 8-5, standard bank hours. My broker would respond to me at 10 pm, when I had free time.

Golf maniac
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by Golf maniac » Sat Aug 01, 2020 10:34 am

totallynotsure wrote:
Tue Jul 28, 2020 3:01 pm
the amount will be $500-$600K (likely jumbo) on a 30-year fixed with a 80/20 LTV.

local credit union quote is 3.125% with $12K in closing costs.

Alliant CU has it at 3.375% with $12K closing costs.

do these sound like decent rates? can we do better? again, total noob here so any advice appreciated.
It is impossible for anyone on here to tell you if those are good rates or not. Rates are based on so many factors including credit score LTV, location, loan type, day to day market variations, etc. You need to do the work by looking online (AIM Loan, Lenderfi), local banks, national mortgage companies, and a broker. They can all give you a quote based on your basic information. Do not allow them to pull your credit until you decide who you want to go with. Play one lender off another to get the lowest rate and costs. As stated above always look at APR. You can get a low rate if you pay enough points. Some lenders show a low rate but have points added. If any lender says they need to pull your credit before they give you a quote, run away they are lying.

megabad
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Re: Homebuyers: Did you use a broker to help secure a mortgage?

Post by megabad » Sat Aug 01, 2020 11:08 am

I have used both. 99% of people should not use one in my opinion. Only reason to use one is if you have abnormal situation (ie. Non W2 income, lumpy income, sketchy credit history). There was also one time I used one because I needed a very very fast close and he guaranteed it. I don’t know how he closed it so fast and basically think he must have broken all the rules to do so, but I got a steal on a house because of him (but paid pretty high interest/fees). Basically if you are putting 20% down, decent credit, and W2 income, I wouldn’t bother. I can get five quotes online in maybe 20 mins that are likely to beat most brokers in these cases.

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