Comments on: Is it good to use a Mortgage broker Vs calling banks directly for a mortgage loan ? http://www.businessian.com/is-it-good-to-use-a-mortgage-broker-vs-calling-banks-directly-for-a-mortgage-loan-46323.html Business Ian Magazine , Businessmen & Business To Business Guide Wed, 08 Feb 2012 08:42:38 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: haygirlc http://www.businessian.com/is-it-good-to-use-a-mortgage-broker-vs-calling-banks-directly-for-a-mortgage-loan-46323.html/comment-page-1#comment-75363 haygirlc Sat, 31 Jul 2010 13:03:39 +0000 http://www.businessian.com/is-it-good-to-use-a-mortgage-broker-vs-calling-banks-directly-for-a-mortgage-loan-46323.html#comment-75363 If you are looking for an REO (foreclosure), it's quite likely there will be some requirements of by whom a potential buyer must be pre-approved. They tend to frown on mortgage brokers and prefer a direct bank. It's not unusual to see a requirement that the buyer be pre-approved with "Joe Smith" from "Wells Fargo" at (phone number) or the offer will not be considered on a particular REO. If you are trying to go FHA, you need to work with an FHA-approved lender--of which Countrywide is one. So end result -- depending on what you intend to buy and what type of program you need, it may be wiser to go with a big name bank. There's nothing wrong with a mortgage broker--in fact that's all I have used myself! You can be pre-approved by more than one entity though it will hit your credit each time, so don't shop the field too freely or it will impact your credit score. If you are looking for an REO (foreclosure), it’s quite likely there will be some requirements of by whom a potential buyer must be pre-approved. They tend to frown on mortgage brokers and prefer a direct bank. It’s not unusual to see a requirement that the buyer be pre-approved with "Joe Smith" from "Wells Fargo" at (phone number) or the offer will not be considered on a particular REO. If you are trying to go FHA, you need to work with an FHA-approved lender–of which Countrywide is one.

So end result — depending on what you intend to buy and what type of program you need, it may be wiser to go with a big name bank. There’s nothing wrong with a mortgage broker–in fact that’s all I have used myself! You can be pre-approved by more than one entity though it will hit your credit each time, so don’t shop the field too freely or it will impact your credit score.

]]> By: Steve D http://www.businessian.com/is-it-good-to-use-a-mortgage-broker-vs-calling-banks-directly-for-a-mortgage-loan-46323.html/comment-page-1#comment-75364 Steve D Sat, 31 Jul 2010 13:03:39 +0000 http://www.businessian.com/is-it-good-to-use-a-mortgage-broker-vs-calling-banks-directly-for-a-mortgage-loan-46323.html#comment-75364 It takes more work and diligence to do it yourself, but it will usually turn out cheaper for you to do it yourself, since the mortgage broker gets paid out of the proceeds from the loan origination fee, which can usually be avoided by working directly with the bank. You need to make sure that if you do it yourself, you set aside a day to call the banks so you compare their rates in almost real time. Waiting a day may see a rate change that skews your results (if you call a bank one day and they quote say 5% and then another bank the next day and they quote 4.75%, if there was a rate drop overnight, you can't compare the 5% to the 4.75, you'd have to call the first bank back). It takes more work and diligence to do it yourself, but it will usually turn out cheaper for you to do it yourself, since the mortgage broker gets paid out of the proceeds from the loan origination fee, which can usually be avoided by working directly with the bank. You need to make sure that if you do it yourself, you set aside a day to call the banks so you compare their rates in almost real time. Waiting a day may see a rate change that skews your results (if you call a bank one day and they quote say 5% and then another bank the next day and they quote 4.75%, if there was a rate drop overnight, you can’t compare the 5% to the 4.75, you’d have to call the first bank back).

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