ok, this is my first home purchase and I have tried my best to educate myself on all aspects, but the more input I can get the better. Some background, the mortgage company is a pretty dominant player in Manhattan and by all accounts should be reputable, but I have a gut feeling somethings are not adding up on what the mortgage broker is telling me. 1. the GFE (good faith estimate) that was drawn... [more]
ok, this is my first home purchase and I have tried my best to educate myself on all aspects, but the more input I can get the better.
Some background, the mortgage company is a pretty dominant player in Manhattan and by all accounts should be reputable, but I have a gut feeling somethings are not adding up on what the mortgage broker is telling me.
1. the GFE (good faith estimate) that was drawn up by the broker has the rate he quoted me, however the GFE sent to me by the bank has a rate .65% higher.
---his response: "oh, thats just a rate the bank puts there until we lock your rate, don't worry, that rate won't be the rate you get, they just need a number so they threw that in"
(my alarm bells always go off when somebody say, "don't worry."
2. We spoke about his commission, it was to be 1 point of the loan amount, I asked if there was YSP (yield spread premium) he told no, i'm getting the rate the bank is offering with no mark-up, however on the Banks GFE it says the YSP will be anywhere from .125-6.5%!
3. He told me not to worry he will not charge me for the application fee (300.00 but i have already paid so much money on other apps its getting crazy), Well anyway they charged my credit card, his response: "don't worry, we'll credit you/ write it off later."
on top of this the banks GFE has a "bonus processing fee to broker of 300.00 , 300.00 app fee to the broker and 150.00 processing fee."
1. Can I/Should I try to get the bank to send me a new GFE with the "real-actual rate they are giving me?
2. all these junk fees can they still be negotiated?
3. i think i should run away from all this but, i need to know if this is just one of the things you gotta put up with?
thanks
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Response by anonymous
over 18 years ago
Posts: 33
Member since: Apr 2007
whenever there's a "dont worry" - red alert!! ur mortgage broker sounds like the most unscrupulous person on earth! but then...if they have any brains and went to college, they wouldn't have to end up being a mortgage broker in the first place! same with used-car salesmen.
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Response by anonymous
over 18 years ago
Posts: 217
Member since: Mar 2007
I used a mortgage broker for my first purchase and I decided I wasn't going to for my next one. Check with your employer to see if they have relationships with lenders so you can skip the fees. I'm no expert but I think point #1 is fine because in case rates rise, they don't have to do more paperwork, but that variance is a bit disturbing. I did remember a lot of nickel and diming from the mortgage broker.
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Response by anonymous
over 18 years ago
Posts: 29
Member since: Jan 2007
op here, thats true #3
I forgot to add, that only 1 week has gone by since I receieved both quotes, also he is telling me that the rate on the banks GFE was not the "REAL" rate I would receive. I'm asking if that is normal, thanks
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Response by anonymous
over 18 years ago
Posts: 227
Member since: Jan 2007
I didn't use a mortgage broker. i just felt there was too much waffling with the rates I was hearing and I didn't receive any GFE directly from lender even.
I went directly to a lender and got a better quote from Wells Fargo - no extra fees or points. The GFE matched what was told to me. I actually think that is strange that yours is different - doesnt sound right.
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Response by anonymous
over 18 years ago
Posts: 1905
Member since: Apr 2007
Are you using an attorney for this transaction? They might have some feedback. Is it too late to shop around & get more feedback that way? I think you're right, "don't worry" really means "bend over". At the very least keep a list of all these points to get cleared up later 'cause "don't worry" could also mean 'you'll forget all about these issues in the tumult of closing'. Good luck & let us know what happens.
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Response by anonymous
over 18 years ago
Posts: 217
Member since: Mar 2007
#3 here, that's what i mean, the GFE is for higher then the current market rate so in case things suddenly move out of your favor, you/they don't have to redo all the paperwork and put your closing in jeopardy. However, how can u ever be SURE they aren't giving you the best rate?
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Response by anonymous
over 18 years ago
Posts: 2841
Member since: Feb 2007
Why use a mortgage broker...go to the lender directly.
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Response by anonymous
over 18 years ago
Posts: 12
Member since: Aug 2006
Sounds like the broker is getting the fee for processing the loan himself. Most brokers are not licensed so it is a gamble to use them. You are better off using Wells Fargo. I am purchasing as well and they have a great no doc program if you have great credit that requires just the appraisal.
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Response by anonymous
over 18 years ago
Posts: 66
Member since: Dec 2005
I dont trust anyone with "broker" in their title.
That is a pretty worthless occupation just replace broker with anything and my thoughts of shaddyness prevail.
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Response by anonymous
over 18 years ago
Posts: 311
Member since: Mar 2007
Go with a different mortgage broker.
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Response by anonymous
over 18 years ago
Posts: 400
Member since: Apr 2007
#8 --- Unless you have a relationship with the lender (and even then), you're subject to their policies and whims concerning mortgage rates and lending policies. Mortgage brokers can indeed be useful (honest ones), particularly in the commercial lending context, although I generally agree that their utility in the residential context is questionable.
Saying all brokers of any kind are useless in kind of like saying all doctors are useless or all lawyers are useless just because some of them are hacks. Believe me, when you;re sick or you're sued and/or arrested and/or need help in starting/maintaining a business, they are well worth it.
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Response by anonymous
over 18 years ago
Posts: 277
Member since: Jan 2007
My mortgage broker just secured a loand for me via Mortgage IT -- which I thought WAS a mortgage broker? If I go to Mortgage IT will I get a better rate? I am already not paying an app fee, so I don't know what else I would really save outside of a better rate. What am I missing here?
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Response by anonymous
over 18 years ago
Posts: 1905
Member since: Apr 2007
Thank you #12. I hear foolish remarks like those of #10 & they just reflect badly on him.
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Response by anonymous
over 18 years ago
Posts: 104
Member since: Jan 2007
just for the record. no one says doctors are useless.
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Response by anonymous
over 18 years ago
Posts: 12
Member since: Aug 2006
Mortgage IT is a good company. The were recently purchased by Deutsche Bank. Loan officers in that company are paid by commission so you should be able to talk them down as long as you do your homework and get comparisions.
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Response by anonymous
over 18 years ago
Can you ask mortgage brokers for references (just like other brokers)? Maybe it'll help to talk to someone who's already worked with them?
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Response by anonymous
over 18 years ago
Posts: 44
Member since: May 2007
I am beginning my third NY transaction in less than 3 years.
I use Ed Carai at CitiMortgage. 212.986.9717
He's thorough, honest, patient and he has a sense of humor.
Normal guy. Hard to find.
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Response by Anon2015ay
over 10 years ago
Posts: 0
Member since: Sep 2015
Trust me from experience, mortgage brokers literally add zero value and just take your money. Unless you have bad credit and struggling to qualify for a loan, don't use a broker. Just literally walk into three banks (e.g. Bank of America, Wells Fargo and Citi) and ask to speak to the mortgage department. They'll show you a rate card with fees, but this is TOTALLY negotiable. It is almost exactly like buying a car - pit the three banks against each other and they will substantially reduce their rates and fees (usually giving you a lower rate and removing the points that are on the first rate card they show you). Why use a broker who is just going to talk to the same people and then charge you a bunch of money and not even try to get you the best rate. Mortgage brokers are a rip off and complete waste of time. Just literally go walk into three banks and pit them against each other and watch the offers drop dramatically.
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whenever there's a "dont worry" - red alert!! ur mortgage broker sounds like the most unscrupulous person on earth! but then...if they have any brains and went to college, they wouldn't have to end up being a mortgage broker in the first place! same with used-car salesmen.
I used a mortgage broker for my first purchase and I decided I wasn't going to for my next one. Check with your employer to see if they have relationships with lenders so you can skip the fees. I'm no expert but I think point #1 is fine because in case rates rise, they don't have to do more paperwork, but that variance is a bit disturbing. I did remember a lot of nickel and diming from the mortgage broker.
op here, thats true #3
I forgot to add, that only 1 week has gone by since I receieved both quotes, also he is telling me that the rate on the banks GFE was not the "REAL" rate I would receive. I'm asking if that is normal, thanks
I didn't use a mortgage broker. i just felt there was too much waffling with the rates I was hearing and I didn't receive any GFE directly from lender even.
I went directly to a lender and got a better quote from Wells Fargo - no extra fees or points. The GFE matched what was told to me. I actually think that is strange that yours is different - doesnt sound right.
Are you using an attorney for this transaction? They might have some feedback. Is it too late to shop around & get more feedback that way? I think you're right, "don't worry" really means "bend over". At the very least keep a list of all these points to get cleared up later 'cause "don't worry" could also mean 'you'll forget all about these issues in the tumult of closing'. Good luck & let us know what happens.
#3 here, that's what i mean, the GFE is for higher then the current market rate so in case things suddenly move out of your favor, you/they don't have to redo all the paperwork and put your closing in jeopardy. However, how can u ever be SURE they aren't giving you the best rate?
Why use a mortgage broker...go to the lender directly.
Sounds like the broker is getting the fee for processing the loan himself. Most brokers are not licensed so it is a gamble to use them. You are better off using Wells Fargo. I am purchasing as well and they have a great no doc program if you have great credit that requires just the appraisal.
I dont trust anyone with "broker" in their title.
That is a pretty worthless occupation just replace broker with anything and my thoughts of shaddyness prevail.
Go with a different mortgage broker.
#8 --- Unless you have a relationship with the lender (and even then), you're subject to their policies and whims concerning mortgage rates and lending policies. Mortgage brokers can indeed be useful (honest ones), particularly in the commercial lending context, although I generally agree that their utility in the residential context is questionable.
Saying all brokers of any kind are useless in kind of like saying all doctors are useless or all lawyers are useless just because some of them are hacks. Believe me, when you;re sick or you're sued and/or arrested and/or need help in starting/maintaining a business, they are well worth it.
My mortgage broker just secured a loand for me via Mortgage IT -- which I thought WAS a mortgage broker? If I go to Mortgage IT will I get a better rate? I am already not paying an app fee, so I don't know what else I would really save outside of a better rate. What am I missing here?
Thank you #12. I hear foolish remarks like those of #10 & they just reflect badly on him.
just for the record. no one says doctors are useless.
Mortgage IT is a good company. The were recently purchased by Deutsche Bank. Loan officers in that company are paid by commission so you should be able to talk them down as long as you do your homework and get comparisions.
Can you ask mortgage brokers for references (just like other brokers)? Maybe it'll help to talk to someone who's already worked with them?
I am beginning my third NY transaction in less than 3 years.
I use Ed Carai at CitiMortgage. 212.986.9717
He's thorough, honest, patient and he has a sense of humor.
Normal guy. Hard to find.
Trust me from experience, mortgage brokers literally add zero value and just take your money. Unless you have bad credit and struggling to qualify for a loan, don't use a broker. Just literally walk into three banks (e.g. Bank of America, Wells Fargo and Citi) and ask to speak to the mortgage department. They'll show you a rate card with fees, but this is TOTALLY negotiable. It is almost exactly like buying a car - pit the three banks against each other and they will substantially reduce their rates and fees (usually giving you a lower rate and removing the points that are on the first rate card they show you). Why use a broker who is just going to talk to the same people and then charge you a bunch of money and not even try to get you the best rate. Mortgage brokers are a rip off and complete waste of time. Just literally go walk into three banks and pit them against each other and watch the offers drop dramatically.