shopping for a loan

Ive been shopping around for 100% financing in my local newspaper and have been successful. The problem is Im dealing with a loan consultant. He told me they can pretty much do any financing Im looking for. The thing is, they charge a 2 pt fee. My question is how do Find those banks that they deal with? I have no problem contacting them directly and avoiding the middle man.

Cutting out the middleman isnt going to save you anything, atleast from my experiences anyhow .

Brokers get wholesale pricing where you wont, YOU WILL PAY RETAIL.

Also all brokers do not charge 2 points but some do charge more and others charge less, then some act like they are taking care of you but get you on the backend .

I get most of my deals for 1.5 points from the originator I work with.

Again I am speaking of my experiences and situation, not the gospel truth.

Maybe there is another way but either way your gonna pay.

Good Luck!!

There is not really a way to cut out the middleman.
Every wholesale lender has a service release fee which brokers and banks all have to pay. Most of the fees on the Good Faith are all third party fees and it has been very hard for me to get an appraiser to drive out to a house, pull comps, put it on the grid, email it and not get paid. As well as the title company doing the title search, and the credit reporting agency that charges banks for ever report they pull.
There is usually only a small fee paid to the broker or the bank (providing you get an honest lender)
So be careful and know what fees are actual hard costs and you will see that in one single transaction there are about 10 middle men.
Good Luck

Don’t tell people you are shoping them. The good “middle men” won’t deal with you if you tell them your shopping. The bad “middle men” will promise you the world and then flip it upside down when it comes time to close.

I’m reminded of a past “potential client” who demanded that I do his loan at par and for $250.00… He had the phone hung up on him a number of times. I was new and willing to do it for $500.00 when no one else was. I don’t know what became of him, but I’m willing to wager that one way or another he paid more than $500.

Lesson: When you find an LO that is honest and you can work well with pay them what they are worth. Everyone in this business is a “middle man” and everyone who does their job well deserves to be compensated well.

My $0.02

The banks that broker’s deal with are the “wholesale” divisions. They do not deal with the general public. they offer better rates than their own “retail” divisions. This is due to the decreased overhead that a lender has when using outside parties (brokers)

I have had clients that I could get them a better rate from their bank than they could.

:o Better rates available through “wholesale” division?!?!

But those “retail” guys work for the bank and make salary… ::slight_smile: