Question for the homeowners...
Registered User
Joined: Jul 2003
Posts: 2,744
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From: Livonia
This in regards to using a mortgage broker for your loan... a buyer broker, in my opinion varies so much from state to state... that I wouldn't know where to start!! The best bet in my areas, is begin with your loan and prequal's... from their, depending on where you choose to do business... most of the companies will be very wells suited at making a quality recommendation, or informing and guiding your directly... but when deciding where to finance your loan... take this into consideration:
Seemshow I have no "jurisidiction" in Texachusetts (whatever that may be!?
) I'll give you a very accurate, non-biased professional opinion...
Hundreds of factors should actually go into detailing what would actually be best for you... best based on a the most obvious details... you should look at a couple main things:
-How's your credit...
-How much equity you have in your previous property (if you still owned it, I couldn't really understand if you "bought before"... but still owned)
-What type of work you are in now (commissioned, salary, seasonal... etc)
-Amount of personal assets
-How much you make per month (that you claim)
now if you have great credit, good equity, or a larger amount of cash assets... skip the broker, and go right to the bank... or credit union. Banks and credit unions can quote you the cheapest available rate (or "par" as it is called in broker terms) without taking a financial loss. They can do this, because they are the one's servicing the loan and collecting your accrued interest. A broker works simply as a mediator between the bank and the borrower. A broker recieves his/her fees by a commission from the bank, based on how much OVER PAR he sells the rate for... Secondly, if you want to "BUYdown" the rate (as you mentioned somewhat in your post)... that is where you can pay an upfront fee, or addiotional closing costs to the broker to compensate for their money loss at giving a rate closer to "par".
Now if you are a "sub-prime" borrower... a bank or credit union will RAPE you!! They most often will not be able to qualify you for a loan based on their system, or if they do... they'll jack up your rate, give you PMI or larger closing cost to justify lending to a "high risk" borrower.
This is where Mortgage Brokers come to play... Most good companies will represent numerous banks... mine in particular work with over 25, and manually underwrite in house for about 13 (which means we finance the loans and actually "decide" whether or not your qualify [fi]for[/i] the bank). This gives us the power of providing better services and better products to you, the consumer. A bank will typically only have 2 or 3 products in the portfolio, where a broker has 25 banks with 2 or 3 each... with much more to choose from... we can use those other "hundred" things to better suit you into a qualified program.
I will do a lot of loans for conforming borrowers as well though (those the banks "prefer" to work with) because often, they are limited to what they know, and do not have the time to surf 20 or so banks to find the "perfect" program. So I will intervene and place someone where they need to be in a tenth of the time. Often saving them 200-800 a month from what their personal knowledge would have taken them...
So in all actuallity, to help you further, I would need to know basic information... I usually ask my customers about 20- 30 questions to ensure their satisifaction to the smallest detail...
If you need to know more... PM me, and I will help you more directly...
I hope this helped...!!
joe
Seemshow I have no "jurisidiction" in Texachusetts (whatever that may be!?
) I'll give you a very accurate, non-biased professional opinion...Hundreds of factors should actually go into detailing what would actually be best for you... best based on a the most obvious details... you should look at a couple main things:
-How's your credit...
-How much equity you have in your previous property (if you still owned it, I couldn't really understand if you "bought before"... but still owned)
-What type of work you are in now (commissioned, salary, seasonal... etc)
-Amount of personal assets
-How much you make per month (that you claim)
now if you have great credit, good equity, or a larger amount of cash assets... skip the broker, and go right to the bank... or credit union. Banks and credit unions can quote you the cheapest available rate (or "par" as it is called in broker terms) without taking a financial loss. They can do this, because they are the one's servicing the loan and collecting your accrued interest. A broker works simply as a mediator between the bank and the borrower. A broker recieves his/her fees by a commission from the bank, based on how much OVER PAR he sells the rate for... Secondly, if you want to "BUYdown" the rate (as you mentioned somewhat in your post)... that is where you can pay an upfront fee, or addiotional closing costs to the broker to compensate for their money loss at giving a rate closer to "par".
Now if you are a "sub-prime" borrower... a bank or credit union will RAPE you!! They most often will not be able to qualify you for a loan based on their system, or if they do... they'll jack up your rate, give you PMI or larger closing cost to justify lending to a "high risk" borrower.
This is where Mortgage Brokers come to play... Most good companies will represent numerous banks... mine in particular work with over 25, and manually underwrite in house for about 13 (which means we finance the loans and actually "decide" whether or not your qualify [fi]for[/i] the bank). This gives us the power of providing better services and better products to you, the consumer. A bank will typically only have 2 or 3 products in the portfolio, where a broker has 25 banks with 2 or 3 each... with much more to choose from... we can use those other "hundred" things to better suit you into a qualified program.
I will do a lot of loans for conforming borrowers as well though (those the banks "prefer" to work with) because often, they are limited to what they know, and do not have the time to surf 20 or so banks to find the "perfect" program. So I will intervene and place someone where they need to be in a tenth of the time. Often saving them 200-800 a month from what their personal knowledge would have taken them...
So in all actuallity, to help you further, I would need to know basic information... I usually ask my customers about 20- 30 questions to ensure their satisifaction to the smallest detail...
If you need to know more... PM me, and I will help you more directly...
I hope this helped...!!
joe
Registered User
Joined: Jul 2003
Posts: 2,744
Likes: 0
From: Livonia
oh... and if you hire a real-estate agent to help you find a house and submit and negotiate your proposals... as far as I know... they recieve their fees from the sale of the house... not from you directly. Typically, the listing agent has to "split" the fees with the buyer broker...
jk
jk
Registered User
Joined: Apr 2002
Posts: 240
Likes: 0
From: Las Vegas
Why wouldn't you want a buyer's broker? They are working for you and your not paying them a dime out of your pocket so I would highly recommend it! The seller pays the commission to his listing agent who then pays the buyers broker a percentage. Also, if you plan on spending that much cash, the buyer broker will be able to show you the other 90% of properties you won't find without one.
