Consumption and Real Estate
First Time Home Buyer – Is it better to use a mortgage broker or go directly to a local bank?
Question : First Time Home Buyer – Is it better to use a mortgage broker or go directly to a local bank?
Who is it better to talk to about getting our first mortgage. A bank or mortgage broker?
first time home buyer mortgage
Best answer:
Answer by fluke
if your credit is good, go directly to the bank. less fees than a broker.
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#2 written by Chester B 1 year ago
I was once in your situation. Don’t worry, everything will work out for you =)
A year ago I found this organization that gives people up to $ 1500 in renter or mortagage assistance! They operate in most US cities, I highly suggest you try to get some of this money.
http://www.my-help-rent-mortgage.org
Good Luck!
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#3 written by Matt M 1 year ago
Broker’s will shop for you, give your file to a number of banks, and those banks will each try and pull your credit. It can add up, since each time your credit is pulled, your score takes a 2-4 point hit. Sometimes local banks are good, but a majority of them only do conventional stuff. National lenders are good as well. FHA is a good way to go for first time home buyers. Are you a veteran? VA Loans are a great for military service men & women. http://www.benchmark-mtg.net
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#4 written by Theandysullivan 1 year ago
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#5 written by therainbowseeker 1 year ago
Before approaching a broker. I recommend doing your own research first. In your local newspaper or on-line, shop around. Look at Banks, (reputable) Mortgage Companies, and even the State or Local Government (many areas have housing finance agencies with 1st-time home-buyer programs).
When shopping different banks, I would start with your “bank of account”- the one who is holding your money. As a depositor, you have a history and possibly some leverage that may help you get more favorable terms. Make sure you pay attention to the details (APR, Points, Fees, ARM terms, etc…)
I’m not a huge fan of mortgage brokers. While the overwhelming majority are extremely honest businesspeople with your interest at heart, there are also a hand-full of dirty dealers, who might get you tied-up with some sub-prime products.
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#6 written by Gotta B. Covered 1 year ago
Now there will probably be many that will disagree with me but here goes….
I’m a Realtor and I have experience first hand as the market and the mortgage industry was changing. The brokers were not able to close deals as often (didn’t say they couldn’t) as they could in the past.
Brokers shop for loan products and lenders already have them. And most of all, the brokers which are able to get you a loan through a traditional lender, has their cut in the process fees.
My advice is to get through an online site such as bankrate.com (I’m sure there’s others) and see who has the best rate and go talk with them about their closing cost fees to compare. It’s a little work, but you will save in the end.
Lastly, as I represent sellers and an offer has a pre-approval from a mortgage company, I don’t give it the same consideration as a direct lender.
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#7 written by Lisa L 1 year ago
Please talk to a mortgage banker too. We are not brokers, we close with our own money so we have lower closing costs than brokers. We don’t have to pay the middle man. Look in your phone book under Mortgage Companies, call, & ask if brokers or bankers. Also get several Good Faith Estimates along with the Truth In Lending. The APR is as important as the rate & it will be on the TIL. If you don’t understand it, ask questions. This will compare apples to apples.
Good luck & I hope you have a pleasant experience.
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#8 written by Karen L 1 year ago
Go to whoever gives you the best deal. Shop around. It’s like anything else you buy, but this time you’re shopping for a mortgage instead of a washing machine. If you get a better deal from someone else but would rather deal with your bank for some reason, tell them you have been offered something better and see if they’ll match it. Get all details from whoever you talk to about what you’ll have to pay over the term of the mortgage.
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I was once in your situation. Don’t worry, everything will work out for you =)
A year ago I found this organization that gives people up to $ 1500 in renter or mortagage assistance! They operate in most US cities, I highly suggest you try to get some of this money.
http://www.my-help-rent-mortgage.org
Good Luck!