i'd shop for quotes with BOTH brokers and lenders.

compare each of their GFE's and then work from there to get pre-approval, funding, etc.

i wouldn't completely disregard brokers, and i definitely would not put all my faith solely in lenders either..

READ the paperwork thoroughly before you sign.

remember: brokers are required to disclose the YSP, whereas lenders are NOT. brokers shop the wholesale market, so they may have access to more loan programs that an individual lender may offer .. just shop around, dont rush into it and dont agree to something just because of the "monthly" amount

 

you act like lenders don't charge points. points are just interest paid up front to lower the rate...... and it's not like you're going to get the same rate the broker is getting when you go straight to the bank/lender

 

like you said in you post above"just shop around, dont rush into it and dont agree to something just because of the monthly amount"
I know what im doing and what I am shopping for, so im not in the business of lining some brokers pockets.
He should be shopping brokers fees while shopping brokers.

 

listen to this man, he knows what he is talking about!

 

you make a very interesting point.


I always wondered how the broker got paid and figured it was either a commission from the lender or I pay them for their work.

Not knowing what a YSP is, I searched for it and now know that either way, I'm paying the broker. Either out of my pocket at closing or with an YSP, my interest rate that gets bumped from the par rate.

Found the info here. This is good stuff.
http://en.wikipedia.org/wiki/Yield_spread_premium

I was leaning more towards a institutional lender (loan officer at the bank) because I assumed that they would give me the par rate but they may give me the same rate (par rate + extra) that the mortgage broker will but don't have to disclose how much they are making, while a broker has to list it on the GFE. So like you said, it would be best to shop both markets to find the best rate.

What do you guys recommend on a downpayment? The more the better or the least the better? I know that putting down the least amount is a "flipper" mentality because they want to put in the least amount of their money. But for a first time buyer like me, who may move or may stay for 10+ years, would it be sensible to try to put the most or just enough to qualify?


Thanks for all the input guys.

 

I went direct with BofA. Nothing but good things to say. We were referred to the junior VP by our agent when we bought the house. But as with everything else YMMV. Try a different branch.

 

I've always been on the side of put down as much as you can reasonably afford. Others disagree with me and there are valid arguments for each. In my case, my goal was the pay off the loan as quick as possible (ie borrow less) but have enough money left to be able to support my life style for 12months with no additional income.

I put down more than 25% but less than 60%

 

if you can afford to pay more down, go for it. but it all depends on your situation. remember that with most programs, you're going to end up paying pmi w/financing over 80%..

 

i was only able to put down 10, so i took out an 80 and a 10

 

From what I'm hearing...they aren't allowing that anymore. Arggg...I've gotten as good a rate as 5.5% while the big banks are charging 6.5%.