bank or mortgage broker for a mortgage?

[lint]

looking to refinance current place and purchase another. Already been in contact with a mortgage broker, so just looking for feedback on experiences, advantages/disadvantages or each, etc.

[Weapon_R]

Advantages of a broker is that they are often more personal, they work very hard to get you approved, and they try several different lenders. I'd say that a broker is best if you have little or no credit as they shop around for the best rate for you. Rates can be higher than a banks, but thats because they shop B-lenders that cater to higher risk customers.

A bank is good if you have great credit because their rates are often the best. You aren't dealing with small B-lenders, which can be a good thing.

[TurboMedic]

if I did it again, I would have gone with a broker, my situation sucked because I couldn't get a letter from my employer that stated "permanent", even though I was...stupid city...anyhow, I would have gotten my initial approved amount had I gone with a broker, in the end I was screwed down to a much smaller amount of cash....

[Toma]

Broker for sure....

[Mazstyle]

Brokers usually offer better interest rates then the banks if you have really good credit....

[lint]

The broker is more personal? I would have thought it was the other way around. I've got a good relationship with my bank, but the broker I talked to was quite good. And recommended by Jimmy Hughes, how can you go wrong?

Keeping some personal financial information from the bank is probably a good thing too.




Originally posted by Weapon_R
Advantages of a broker is that they are often more personal, they work very hard to get you approved, and they try several different lenders. I'd say that a broker is best if you have little or no credit as they shop around for the best rate for you. Rates can be higher than a banks, but thats because they shop B-lenders that cater to higher risk customers.

A bank is good if you have great credit because their rates are often the best. You aren't dealing with small B-lenders, which can be a good thing.

[Jerms]

go through a broker....

go check out johninaba.com

[Weapon_R]

Originally posted by lint
The broker is more personal? I would have thought it was the other way around. I've got a good relationship with my bank, but the broker I talked to was quite good. And recommended by Jimmy Hughes, how can you go wrong?

Keeping some personal financial information from the bank is probably a good thing too.





Your experience may vary. I just think that a broker works hard and has several different lending sources to get you approved. The nice touch is that they work with you closely and submit to companies on your behalf. As you noted, having a lender and your bank account in two different places means that there is only so much they can verify if you need to sugar coat your application ;)

[cocoabrova]

I've dealt with both and I'd have to agree with the broker being the better bet. They are WAY more personal and attentive to your needs, and they work for YOU, whereas a bank works with the attitude that they won't go broke if they don't get your business. Keep in mind also that a broker gets paid by the lender, not the homeowner, this also helps to keep them on top of your file(s). If your situation is *special* than definitely go with a broker as they have alot more avenues through which they can get your deal done. If you need a name of a good one (the one I use) PM me and I'll give you his contact info. He just did ours and is also a good friend of mine for 15+ years:thumbsup:

[D. Dub]

I say go with a broker...but then again I am a broker.:D

Seriously though a good broker will help you all the way through a deal....we have access to ALL the banks and lots of other different types of lenders whereas with the bank thats the only option unless you shop around yourself which is time consuming and a PITA.

Brokers can get you the best rate without you even having to leave your living room :thumbsup:

[Tik-Tok]

Broker will get you a better rate than arguing with a bank yourself.

[Nizmo_GTR]

Would a bank approve a mortgage for a home that has yet to be built? The lot is currently bare but has already been developed by the city. A few houses have already been built on the block. The home builder expects the key handover to take place in 10 months.

Also if I use a broker to get the mortgage, does the broker get paid through me or the lender?

[Weapon_R]

Brokers are paid by the lender.

[Nizmo_GTR]

^ Therefore if I used a broker, would my mortgage rate be the same as if I didn't use a broker, assuming all else equal.

[lint]

Originally posted by Nizmo_GTR
^ Therefore if I used a broker, would my mortgage rate be the same as if I didn't use a broker, assuming all else equal.

same or better with a broker. Saves you the effort of contacting banks and credit unions yourself. And the biggest advantage I think, your credit is checked once by the mortgage broker, and then shopped around. If you went to each bank/credit union yourself, they would each make a hit to your credit history, and that doesn't look good.

[Cypresskilla]

I'm a Mortgage Agent, PM me if you have any questions

[Zero102]

It sounds like we have a couple mortgage brokers on here, so I've got a long-winded question. :D
In about a month's time my (soon to be) wife and I will be shopping around for a house. The problem is we are employed here, but wish to move to Kelowna where of course we couldn't keep our present jobs. Couple that with it being our first house, and I have a monthly car payment, so I think we will need the help of a broker. We would be looking to buy a place somewhere around late august/early september.

Is buying a house at this point a bit too much of a dream? Will we have to rent for a few months until we have established work history in BC first?
We would be looking at putting 10% down on a ~$150,000 house, and both of us have very high credit scores if that helps at all.

[D. Dub]

It might be difficult to get a mortgage right away as lenders will want you to be past any employment probation periods. There are lenders that would likely do it but the rates will be higher.

From a more pragmatic standpoint it may also be better to rent until you're established in case things don't work out; that way you're not tied to anything there...what if... after 6 months you absolutely hate it there?

[Zero102]

Well, my G/F is tied there for 4 years, so tough ;)

Ideally we would want to start building equity as soon as possible, which is why I want to minimize the rental period. I am presently renting a place, and I hate that my money is paying down somebody else's mortgage.

Is it simply a matter of being past a probationary period?... That doesn't sound so hard to meet.

[HRD2PLZ]

If its any consolation, I am in the real estate business and I have always used a Mortgage Broker for my own personal transactions.

[Tyler883]

We started at a broker, and he quoted a rate that the Royal Bank would not touch. But it was with some weird ass investment group that I've never heard of before.

In the end, we went with builder financing(CIBC) because our builder would pick up the cost of lawyers fees. When we quoted our best rate from the broker, the CIBC didn't have a problem matching it, in fact they beat it by .1 %.

[D. Dub]

Originally posted by Tyler883
We started at a broker, and he quoted a rate that the Royal Bank would not touch. But it was with some weird ass investment group that I've never heard of before.

In the end, we went with builder financing(CIBC) because our builder would pick up the cost of lawyers fees. When we quoted our best rate from the broker, the CIBC didn't have a problem matching it, in fact they beat it by .1 %.

Thats where a broker earns their keep...when you use a broker YOU don't have to negotiate or bang on the bank doors and you still get the best rate.

It's all about choice and convenience :thumbsup:

[AndrewMZ3]

Can anyone recommend a good mortgage broker that works fast? I made an offer on a unit based on the pre-approval amounts that the banks' websites calculators had. The realtor I am dealing with said I should contact a broker immediately though.

[D. Dub]

I'm a broker...pm me.... I'll be on it like white on rice!!!!:D

[AndrewMZ3]

that was fast.

pmed.

[$lick_rYz]

How much do Mortgage Brokers earn? I know its commission based but I m jus wondering how much? b/c I'm thinking about doing the mortgage program at MRC just trying to figure out if its worth doing so.

[D. Dub]

Mortgage Brokers are like realtors.

How much you work and and how well you work leaves a wide range of salaries.

Some brokers make $20,000 a year and some make $250K or even more.

[Vr6boi]

Go with a broker, they work hard for your money and shop all lenders available to them to find you the best rate.
Brokers work for you and not the bank. The bank pays them for the service/business.
Bank mortgage agents, work for the bank and not you!!!
Better rates and service with a mortgage agent then with the banks I feel.
Personal choice I guess. SHOP AROUND

[Xtrema]

Question for brokers, I know you'll get better deal than banks. But I have the comfort knowing that major banks won't go under which these lending institute might. What happen to your mortage if lender go bankgrupt? Any protection from government?

[rockym20]

Originally posted by Xtrema
Question for brokers, I know you'll get better deal than banks. But I have the comfort knowing that major banks won't go under which these lending institute might. What happen to your mortage if lender go bankgrupt? Any protection from government?

Chances are that another lender would purchase your mortgage. Anyways, whatever had been previously agreed to in the mortgage would be binding, no matter who took it over.

[D. Dub]

Originally posted by Xtrema
Question for brokers, I know you'll get better deal than banks. But I have the comfort knowing that major banks won't go under which these lending institute might. What happen to your mortage if lender go bankgrupt? Any protection from government?

Brokers like me deal with the major banks and mortgage lenders!!!!

[Xtrema]

Originally posted by rockym20


Chances are that another lender would purchase your mortgage. Anyways, whatever had been previously agreed to in the mortgage would be binding, no matter who took it over.

That's what I thought. Thanks.

[black_2.5RS]

I'm looking for a mortgage broker too. If anyone knows any, please PM me.

[Tyler883]

Originally posted by black_2.5RS
I'm looking for a mortgage broker too. If anyone knows any, please PM me.

Read the thread, bitch.

[sputnik]

I bank with TD and they have their own "commission only" brokers in house. I dealt with one and he gave me the lowest rates that I could find on the other brokerage sites online.

It was VERY easy and I liked being able to have my mortgage with the same institution that I bank with.