Some questions about using a mortgage broker

My inspection went well and hopefully we will be going into contract soon. So I need to start thinking about getting a mortgage. We are preapproved with Bethpage Federal Credit Union, but my real estate agent is recommending a mortgage broker.

What should I expect when using a mortgage broker? What types of fees should I expect to pay? Is there anything that I should be wary of? I know nothing about this process and any information would be helpful.

TIA

Re: Some questions about using a mortgage broker

We used a broker and were very happy with the experience.

He did a lot of shopping around and got us the lowest rate possible and walked us through the process.

We paid him a fee but, he received most of his commission from the bank who wrote our mortgage.

We used him for our refinance as well - and it was great, we were able to do things quickly and smoothly.

It doesn't hurt to call and see what they can find for you - and then compare the good faith estimates and see which one is more reasonable.

Re: Some questions about using a mortgage broker

brokers are really a thing of the past b/c of the new regulations in the industry

you will get a much better price from a bank or a direct lender

I would stick with Bethpage or Continental home loans - there rates and fees are better then most traditional lenders

and as an FYI- I never push a buyer to use one of my people- I have people I recommend- but if you are already pre-approved and happy- that's enough for me!

Re: Some questions about using a mortgage broker

We used brokers recommended by our agent (who is also a close family friend) both times we bought.

I wasn't happy either time - the first time, the broker sent gave different numbers to the bank that we were financing with and to our attorney so we showed up to closing short money ( a few thousand $$) on our certified check. They wanted to reschedule the closing, which would have cost us more $$ to get everyone back there again so our atty called her and told her off telling her that SHE was going to guarantee our personal check since she screwed up. It would have been a huge PITA to reschedule since the closing was in midtown and everyone was coming from LI and Westchester.

The second one "forgot" that we wanted to buy down our rate. I kept asking her when we needed to decide by and she kept telling us that we had plenty of time. When it got close to closing and I asked her what ever happened to the buy down she told us it was too late - or we would have to reschedule and it would cost us more $$ again. Now that we are refinancing I am GLAD that she screwed up and we didn't do the buy down!

I think it is just one more person in the mix. It's like the game telephone - the more people the info has to pass through, the greater the chance of screwing it up.

Good luck!!!

Teachers Federal has great rates right now - that's who we are doing the re-fi with, but you are looking at a 60 day or greater closing time.

Re: Some questions about using a mortgage broker

We just closed with bethpage today. We didn't use a broker, and got the best rate around. Although I made the mistake of checking the rates this morning, and they went down AGAIN... but oh well.

The process is a pain, but well worth it. Feel free to FM me if you have any q's re bethpage!