Quote:
Originally Posted by MaDMaN_26
My experience is Brokers get a better commission with one lender and so tend to favor that lender, if its a .1% difference to you yet a $200.00+ commission difference to the broker... I'm betting they go with the bigger paycheck... I say this because brokers always seem to go with a first national or the like and I have found the big banks can offer a similar deal or in my latest case a better one... but I don't know that just seems to be that way.. and I assume because first national pays them better.
Maybe you would know this Moneyguy, could a person not request their own credit report and shop around with it in hand. When the lender asks to check your credit you hand them it and say assume this is correct, if I use you of course you will be able to check it in your system and if they don't match your under no obligation to honor any verbal deal we have...
I would think they should be able to quote you based on that...
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There is more to a persons application that just their credit report. That does play a major role in what type of rates they can get but there are other factors involved with the application.
There are different commisions on different products that the banks offer. Most of the differences aren't that significant for the most part. For myself I try to find out what the needs of the borrower are rather than just the interest rates. Many programs have better pre payment plans, some penalize the borrower less if they need to get out of the mortgage etc... each borrower has his or her own needs and a good mortgage broker should try to match the borrower to the appropriate program, as well as getting them the best rate.
If I put a client in a program that makes me an extra $200 and then he finds out 2 weeks later he could have saved 1/2% he is going to be pissed with me and not want to use me when it is time for his renewal, and he certainly won't want to be referring me to his friends and family which a huge source of my business. A good mortgage broker should be looking out for all of a clients needs. It is better for himself and the client long term. (Not saying all mortgage brokers share this mentality)
As far as having a lot of inquiries on your credit bureau damaging your credit goes, it's not the banks or lenders that determine your credit score. Equifax or Trans Union determine your score based on payment history, type of credit, and number of inquiries amoung other things. If there are a bunch of Inquiries on your bureau it does damage your score. I don't agree with it but that's the way it is so you do need to be careful about too many inquiries. As Money guy mentioned, a mortgage broker can pull your credit once and shop your deal around to get you the best rate and program for you.