Posted by Zena Ford on August 08, 2003 at 19:05:34:
I am a Mortgage Loan Advisor in San Jose, CA and in my opninion - IF you have the time and the Seller is willing - there would be little harm done in getting an approval with another Broker to see if a lower rate is available. You don’t have to ditch the other loan…yet.
Many a Broker would jump at the chance to compete for your business and do their best to beat the other guy.
Normally, I would be against such a thing - but if I had forgotten to lock my Client’s rate and they got stuck with a higher one, I would fully understand if that Client abandoned my services.
On the other hand, if you go with the higher rate - as your husband wants to do - you will have a higher deduction than with the lower rate.
My husband and I are just starting out in REI. We are in the process of purchasing a single family house to fix and flip. The house has $40K equity. We are dealing with a mortgage broker whom we have known for over ten years. The mortgage broker did not put in our paperwork that should have locked us in at 5.5%. He pretty much sat on the paperwork because he is starting up his own firm and forgot about it. Now he is trying to rush and get our paperwork through with a higher interest rate. We personally know the seller and he has been very flexible and patient. I just want to walk away from this broker, and start all over with another broker or bank. We have very good credit and I am confident that we will get the finance. However, my husband wants to hurry up and close the deal so he wants to stay with this broker.
Can anyone please give me advice? I think this person demonstrated poor business practice and I want to stay away from him. Or should I just go with my husband and hurry and close the deal?
The relationship with the broker may be able to help you in the long run. Much more that the .25 % additional monies you might pay extra on a loan on a property you intend to quickly flip anyway. ( In other words you may pay the .25% extra for 6 months at most.)
If he develops a continuos tack record of being absent minded that is a diferent thing. But don’t over react on what may be an innocent oversight. Maybe suggest to the broker that he should devise a system to log his incoming work that way he will not have a repeat of this error.
If this is a conscientous guy who is always approachable and available to you I say keep him, till he proves otherwise. There are few people who will simply admit their oversight. That suggests to me, at least he is someone conscientous and who you would want to work with.
Re: ADVICE RE: ABSENT MINDED MORTGAGE BROKER - Posted by James (fl)
Posted by James (fl) on August 09, 2003 at 16:51:58:
Ask your broker to do it for free now sincec he screwed it up the first time. rates went back down friday and par is currently at about 5.75. Im sure he could do it for you for that and just not make any money himself. It it were for a friend of mine, and i screwed it up, ,I would redo it for free, it doesnt really take that much work to redo it if he already has the package done. just lock it now and submit… If he really is a friend, he should worry more about keeping your feriendship, and doing more business with you in the future, then screwing you this time to make a quick buck.
Re: ADVICE RE: ABSENT MINDED MORTGAGE BROKER - Posted by Mike (NY)
Posted by Mike (NY) on August 08, 2003 at 19:44:11:
Maybe since he is a friend of your husbands he would be willing to do the loan for less to make it up to you.
Otherwise I would recommend finding another broker who will stay ontop of your files. You have already lost out on a good rate and he should not be rewarded by still getting your loan.