Can I go with mortgage service recommended by my broker?
I am buying a new home. I am checking out all local mortgage lenders. My broker is really good and she did a great job in negotiating several things with the builder. She recommended a mortgage service within her brokerage firm. Is it recommended to with the mortgage service of the brokerage firm? Please share…
I am buying a new home. I am checking out all local mortgage lenders. My broker is really good and she did a great job in negotiating several things with the builder. She recommended a mortgage service within her brokerage firm. Is it recommended to with the mortgage service of the brokerage firm? Please share your advice. Thanks
This is your choice. You might use this mortgage company that is an arm of your real estate agents company or you are allowed to select your own mortgage lender.
Normally it is not a conflict of interest as your real estate agent should not be compensated for using this mortgage company. If there is a conflict of information, you might consider, whos side your real estate agent would take.
The primary consideration in using the recommended mortgage, is are they authorized to do FHA mortgage loans. FHA mortgage loans require less of a down payment and a move in requirement per your appraisal on the property. If there is damage indicated on the appraisal, to the property normally, prior to the closing of a FHA approved mortgage loan the seller would be required to make the repairs or leave a certain amount with the escrow closing agent to cover the expense of the repairs.
A FHA mortgage loan would require the down payment of about 3.5%. A conventional mortgage lender would require 5%-10% down with you required to pay private mortgage insurance (PMI) to your mortgage lender along with your monthly mortgage payment. If you would not want to pay PMI then you would be required to have a down payment of 20% or more.
The primary consideration in obtaining your mortgage purchase loan would be your credit score and your debt ratio derived from the amount of debts on your credit report and the amount of income you are able to prove with income taxes, pay stubs, and w-2 forms.
In making my decision I would be concerned if the mortgage lender would be authorized to do FHA mortgage loans I would want this option, even if I chose no to use it.
I hope this has been of some benefit to you, good luck.
There is another solution, and that is the home mortgage brokers. These firms are firms that represent a few different lenders and the packages they have. The result, is that when you apply to them, they will go through, and select the best option for your needs. So, how do you begin?
Start by looking through real estate magazines, and even online. The result is that you can find many options. Remember, the more lenders and packages, that the home mortgage brokers represent, determines how much chance you have to find the best packages. See More…
Generally not a good idea since there is a conflict of interest. Your agent has a fiduciary duty to get you a house at the lowest price possible. It is in the mortgage services best interest to get you into the highest mortgage with the highest interest rate possible. Who do you trust if BOTH sides are working for the same company? If your agent your ally or an ally of the comapny providing the loan?
All lenders will be or should be pretty close on the actual numbers for the loan itself, but its the other items like application fees, or appraisal, etc. that can be different.
Shop them all (it doesnt matter that your broker recommended someone, though you might ask if she gets a fee or commission for that).
you get the best deal you can and it doesnt matter from whom. Assume that your broker does NOT not have your best interests in mind if she is recomending her own firm. Shop around.
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Mortgage Professionals … Pros & Cons of Recommending a Mortgage Broker vs. A Bank?
What information/services should a mortgage broker provide?
,? (,,) 100, 10, ;~?