Mortgage broker etiquette - should I use multiple brokers to make sure I'm getting the best rate?

Question

I'm looking into getting a home loan. How do I know if the mortgage broker I'm using is getting me the best rate? What is the etiquette of using multiple brokers? Is there a reliable web resource where I can enter parameters and check as well?

Answer 1

Absolutely.

However, be sure to visit all that you plan to visit within the SAME 10 calender days from the first to the last.

When companies order credit reports, their account is tied to a specific purpose, and this is picked up by the system of the credit bureaus.

If the purpose for you obtaining a MORTGAGE loan is done within the same 10 days, then it is counted as a SINGLE inquiry instead of multiple...this prevents a significant drop in your credit score from mortgage shopping.

The same is done with car loans.

Answer 2

Certainly talking with several is in your best interests. Each company has it's own programs and terms. You want to be able to know about each program and decide which one is best for your financial situation.  Mortgage Brokers can sometimes offer better terms, because they can shop around for rates and terms. Whereas a bank or mortgage company like Wells Fargo, has set programs with rates and terms. The mortgage broker has more discretion regarding fee's as well, Wells Fargo Loan officers may not.  

Answer 3

There is nothing wrong in working with multiple brokers.  After all, it's an open market.  Remember, banks and brokers have only their own best interest in their mind.  There is only one person who is going to be on your side - you.

You don't have to tell a broker that you are working with someone else as well, as it's none of their business./

Answer 4

First things first. Use your bank as reference before going to brokers. Brokers tend to charge slightly higher, they have to eat to you know. Using your own bank might also qualify you to some additional discounts on points/interest rate.