Is there a reason to go to a mortgage broker instead of just going to a website like lendingtree.com?

Question

What can a mortgage broker do for me that I couldn't do shopping around for morgage rates myself?

Answer 1

Your mortgage broker can be your local contact for help when things don't go exactly as planned, which is not uncommon. As a real estate broker, I could tell you numerous nightmares about 'online lending' sources. Paperwork not there in time for closing, and frantic calls to the online lender are answered with "you will just have to reschedule your closing for another time.

Not a good scenario when the moving truck is sitting outside my office with most of the worldly possessions of the buyer inside, with no place to go.

I recommend working with the local source.

Answer 2

Going to lendingtree, you'll get a few offers from their paid advertisers. Those guys have to make some money to offset their ad budgets. So they may or may not be your best deal.

And you can always shop multiple brokers, some have better rates and investors than others.

I work for a large broker/banker, and on any given day, for any specific product and price-point, the investor with the best pricing can vary. What I mean is that, for example, you want a 30-year fixed rate conventional loan. At 6.25%, Bank A has the best price. Maybe you want a no-cost refi at 6.75% instead, it'll be Bank B or Bank C offering the best price at that rate. If you want a 5/1 ARM, Bank D might be best. 7/1 ARM, Bank F is best.

That's what we do, as brokers, is match up dozens of products and investors and see who can get you the deal you want at the lowest price.

And for me, I'd rather do business locally vs. whoever was in line for the next lead from lendingtree. It's likely to be smoother, since local guys will have local appraisers and title companies and should be able to coordinate the process easier.

Answer 3

You should really do both at the same time. One important thing that a broker can offer is to lower the closing costs. I recommend getting some solid info at www.bestmortgageanswers.info but the important this to remember is that you can go to an online site, get their best rates, and then go to a local broker and ask them to match the rates, while giving you local service.

Answer 4

I think so.
Money is a comodity just like anything else. And you can get money "wholesale" or "retail".

I have a Mortgage broker I have used several times and have saved thousands of dollars.