Should I go with mortgage broker?


Question:
I have great credit rating and planning to buy my first home in California. Should I go with eloan.com, my credit union or a mortgage broker is always a better deal?

Thanks!!

Answer:
In my more than 20 years in the business with experience as both a mortgage broker and a mortgage bankerI can tell you that you are more likely to have access to more choices in loan program and lower fees using a bank. Brokers are, after all, a thrid party.

In addition, a bank is interested in developing a long term relationship with you in all aspects of your financial picture so aremore likely to be concerned about your satisfaction with the process rather than about how much they are making on this one transaction.

Finally, banks are more heavily regulated and the incidence of predatory lending is much lower in mortgage banking than in brokering. Fewer loan sharks = a better consumer experience.
You should go directly to your bank. A mortgage broker is good if you don't have great credit. Since you have great credit your bank should be able to help you out. The bank is a direct lender and their fees may be cheaper and offer lower rates. Mortgage brokers can tack on extra fees to your closing costs...I say cut out the middleman. E-Loan shops the mortgage for you and may end up having several banks pulling your credit (which will lower your credit score). Make sure you get a good faith estimate where ever you choose to go. Good luck!
You should go to all three and see who is best for you! The credit union seems like it will give the best rate but mortgage brokers can be very competitive and shop national lenders for you. Get referrals from friends or family.
A mortgage broker or your credit union. You want to meet with someone face-to-face. Purchasing a home is very complex and you need to work with someone who understands that and how to explain it to you. I gurantee you that someone on the interenet or the phone will not be able to answer all of your questions accurately. Not saying ALL brokers know what they are doing either but if you are sitting across the desk from someone you'll get a much better feel for their honesty.

It's your $$$$. I'd want to know exactly who I was dealing with on a face-to-face basis with my $$$.
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