Is using a mortgage broker better than going staraight to bank? ?

Question

Anyone had any experiences with places such as Ditech, etc? This is a refi of a 3yr old mtg loan.

Answer 1

I do not franchise anything, including loans.

Talk to friends, find a good broker in the town you live in.

Do not deal with ANYONE online and you should be OK.

There are lots of scum bags in the mortgage business, it is not well licensed, that is why it is so important to deal with someone you know is trust worthy.  I only deal with one and am very loyal, I know she will never do me, or anyone dirty.

Answer 2

I've had several loans with Ditech and they've ALWAYS beat every broker I ever tried.  If you have strong credit, you can usually do a better job yourself but it ALWAYS pays to shop around.  Just watch the costs closely!  Brokers have to get paid somehow and their cost will be buried in the deal somewhere.  Few states require the actual amount paid to the broker to be divulged to you, or where it is hidden, but rest assured they don't work for free!

When doing a re-fi your best first stop is usually your current lender, unless you're with one of the "B Paper" lenders.  If you're with a major bank, mortgage lender, credit union, etc. then inquire there first.  You can often get a deal on the rates and a break on the closing costs especially if you have a spotless payment record with them.  If you've been a good customer they probably want to hang on to you.

Answer 3

A friend of mine was going to use them until they sent her an estimate of fees - they also convinced her that her credit was so bad that she wouldn't be able to get a loan anywhere else but through them. I gave her a few phone numbers of mortgage contacts that I had and of course, she was able to do a lot better and closed the refi loan with no problems.

Bottom line is, loan officers and mortgage brokers are like any other sales person - it's up to you how much you want to get ripped off. Do your shopping ask a lot of questions and get it in writing. The Lender should have no problem sending you an estimate of costs. One of the big problems that the real estate market has had is uneducated buyers and borrowers. Educate yourself and do as much research as possible before jumping into another loan. Good Luck.  

Answer 4

.    You can have good luck at mortgage brokers and bankers.  Traditionally the brokers needed to get paid so they added their fees on top.  YOu might pay $500 more thru the broker.  Recently i've found brokers who obtained loans that i would never have discovered without them.  It was worth the $500.  One broker sent the loan to a Credit Union that wanted to build up its portfolio of loans.  It was a great loan and i would never have walked into that Credit Union to inquire.

Ditech advertises a lot on tv. That worries me.  SOmeone has to pay for those ads.  But they might be fine.  Try them.

Answer 5

You can shop around like any other big purchase you are making.  Go to all of them get the best rate and then see if the current bank/broker you are using can macth or beat the price you have obtained.  My friend saved 1500 by going online getting a quote and then going back and forth between his local Mortgage broker and an online broker.

good luck