Mortgage Cost Question
I do nto understand the costs of getting a mortgage. If I go directly to the bank, will it always be cheaper than going to a broker? One of my brokers says that he is a wholesaler for the bank so the costs are the same. But most Good Faith Estimates I get from brokers have a Broker Fee and/or Points.
I understand that brokers serve a purpose and can find the right program for you. But if you already know the bank and program you want to use, is it always cheaper to go directly to the bank.
Brenda
Brenda,
You seem to have been rather active at TCI for the question. If I am just misunderstanding what you are asking let me know.
1. It is very possible that the deal from the broker is no more expensive then a deal directly from a lender. Some lenders that brokers deal with do not work directly with the public.
2. There are also times when the broker charges are higher then if you went direct.
I mostly recommend that you shop around to find a broker that you feel you can work with. Compare the deals they are offering to see if they are close to other deals. Watch out for late charges and other minor things that show up on a closing statement.
John
[addsig]
I ask because a broker told me last week that he could write loans for Washington Mutual and Wachovia for the same closing costs, rates, etc as if I went to Wachovia and WaMu. I like the idea of using a broker, with the hope that he knows the programs and can pick the best one. But how can a broker write a loan as cheaply as the bank does?
If he does not have a broker fee or points on the closing statement, how is he getting paid? I assume the processing and underwriting fee go to the bank.
Brenda