what lender to choose

**mciau** · 02-20-2008, 01:43 PM

I know that there are a lot of institutions out there that do loans i hear the advertisements all the time, but how do i choose which one to use??? Are there any specific lenders that any one can recommend??? I know the major ones are the banks but which ones are the one that are more lenient towards people who don't have much to spend and are looking to invest.

**Mike Taylor** · 02-22-2008, 04:49 AM

Talk to a mortgage broker. That way they will have many different banks they can shop your loan around to.

**waynelong** · 02-22-2008, 12:51 PM

I am going to respectfully differ with you on this one Mike. Since the crash of the sub prime mortgage - the lenders have close to the same programs available at all the companies. There is not much reason to put a Mortgage Broker or middle man in the mix. I would go straight to a Wachovia, or Wells Fargo or whoever you are comfortable with.

All the mortgage broker is going to do is sell your loan to the one of these he can get paid the most commission for.

**Mike Taylor** · 02-22-2008, 12:59 PM

Wayne -

I respect your opinion a lot, but we are going to have to agree to disagree on this one. I currently have my mortgage broker license and have friends in the business who work directly for lenders. 9 time out of 10 I can beat their rate by a mile. Different lenders specialize in different products and rates vary greatly from bank to bank and product to product. If you have a competent broker that stays abreast of this information, you will be far better of with a broker.

**waynelong** · 02-22-2008, 01:21 PM

I am good with that - it has just been in my area of the country that it doesn't seem to work that way. I can see how it could work that way - and if you are doing it - then I think that is great!

**RobM** · 02-22-2008, 05:33 PM

It may boil down to not who do you choose, but who chooses you. Depending on your requirements, and finances, the choices may be made for you.

**carlam** · 02-25-2008, 07:08 AM

It always pays to shop around for a loan, I would talk with my bank and a mortgage broker. There are different programs available and you may fit better into one than another.

**Orlando MLS** · 03-06-2008, 07:08 AM

I agree with the statement above - brokers can often get a better rate than going direct with the lender. Brokers often work with 100's of lenders and can shop thousands of loan products whereas going direct with the lender will only provide you with the loan products sitting on their shelf. More flexibility comes with working with a good broker.

I would call a couple of mortgage brokers and interview them. I would look for someone with a minamum of three years experience and someone that will work to close the hard loans. If you get someone that is lazy, they won't do the necessary work to close or shop a hard loan.

The next thing I would do is find a broker that answers there cell phone every time you call them. Or at the very least responds quickly when you leave a message. Make sure you get one that answers the phone at nights and on the weekends. It helps you a lot as a real estate agent to be able to get an immediate response for your client.

Choose about three different brokers to work with, so you can give your clients options. Many times you will find that one brokers personality is better suited to your clients for one reason or another. Sticking to one broker will not necessarily make you look good in the eyes of your clients. More options is better. Also, make sure that these brokers are willing to refer you back some clients. It's a two way street and I'm sure you would appreciate the extra business that can come your way from a mortgage broker.

Hope this helps. Best of luck

**TobyMunk** · 03-14-2008, 08:27 PM

Just do the following:

Pic the bank that you like and choose a mortgage broker.
Tell the mortgage broker that you are working directly with that one bank and that he should not contact them.

Then see who gets you the better rate. Simple.

**SuperJumbo** · 03-29-2008, 09:06 AM

the answer to this question changes as the market changes, so it's always good to revisit.

while it is true that a broker's choices are much fewer these days (since many institutions and shut off wholesale channels or closed completely), brokers can still add much value to your business.

for straight forward, easy to qual/close loans, you may find that using a direct lender will cause less headaches, BUT...brokers are much more valuable when working tougher, out of the box deals...and a broker has the ability/option to submit to more than 1 bank, so if one bank simply doesn't like the deal (for whatever reason) he/she can go elsewhere (this is happening all day every day right now).

Finally, even when it comes to "vanilla" type products (fannie mae, freddie mac, fha, etc.), most lenders (direct or wholesale) add their own layer of UW restrictions/guidelines that will cause a loan to be denied at one bank when the same file using the same program could be approved and funded at the bank across the street!

So if i were a realtor i'd find a great banker AND a great broker to do business with.

Finally (my personal plug)...if you work with ultra-lux properties you may find that neither your broker NOR your banker can handle loans over $3-5MM, or alternative doc loans over $2MM...that's when you need a third specialist involved...like me

thx for reading, hope this helps a bit.