Quote from @Carlos Ptriawan:
Quote from @Doug Smith:
good brokers actually can charge a client less and book the deal through the same lender than a customer can get going directly to their retail side.
that's precisely my question, then how do I know if broker is good or less than good ?
also when appraisal/underwriter comes, is the underwriter executed from broker side or lender side ?
Let me answer your questions one at a time:
1) Does a broker have access to all lenders? No, lending is private, not a government thing. Each lender is a private entity and vets each broker that they work with. Some have retail channels...which you can do to, but many wholesale, meaning that they farm out the distribution function to brokers. It's a lot like the beer industry. A large brewery, let's say Miller Brewing, produces beer in bulk. Unless your visiting on a tour, you just don't walk up to the brewery, nock on the door, and say "I would like to purchase. 12-pack". No, they wholesale the beer out to vendors...grocery stores, liquor stores, etc. In lending, the vendor is the broker. They happen to carry the products of several lenders on their shelves. As each liquor store might not carry every obscure brand, they will likely have enough to provide a variety to the customer. You might like to buy beer from a large vendor like Total Wine or a huge grocery store chain or you might like to go to that small corner store that gives you great service and recommendations...and often times great prices.
2) You can visit every liquor store in the state, or you can visit a couple in your neighborhood and figure out who has the best service and pricing. Calling every mortgage broker and pitting them against each other is also not a good philosophy. We put in a ton of work into helping our clients. I've done this for 32 years and I bend over backwards to help my loyal customers. If someone makes me jump through hoops but I feel that they will sell their mother for 1/8% on a deal, I usually won't work with them. If they truly are a pleasure to work with and I feel as if they want to develop a relationship, I'll move heaven and earth to take great care of them. In lending, price is only one small portion of the equation.
3) No one is stopping you from contacting the lender themselves. Just like you can knock on the door of the Miller Brewery and ask for beer, you can knock on a lender's door. They just might be in the wholesale, not the retail business. Lending is complex...much more complex than most of the people on here realize. Lenders want brokers that know how to properly package a loan for underwriting submission. They don't have time to deal with novices that don't know the ins and outs of TRID, RESPA, etc...
4) I would get recommendations on brokers from those you trust. I'm referred to people all the time as I've built credibility over the years. That's how you know if they are good or not.
5) Appraisal orders depend on the lender. Sometimes the broker does it. Sometimes the lender does it. Usually, though, they are ordered through Appraisal Management Companies (AMCs). A good broker will know the difference.
One of the complaints I have about BP is that many people on here with little experience will come on and tell you that it's a good idea to do things yourself. I suppose you could also grab a kitchen knife and remove your own appendix, but you really should go to a seasoned, licensed pro to do that. A wise man once said, "If you think it's expensive to hire a professional, try hiring an amateur." A good broker will usually save you a lot of money in the long run and they will keep you from making big mistakes. I hope this helps.
