Is that a snake asking who is speaking with a forked tongue?
You indicated that it was a small town and that you know everyone. I suspect they might say the same so little will remain hidden. Hence you closing statement "What thou dost not know… " seems unwise.
Ask the broker why his value add is and let him answer. If he can make a compelling case then stick with him. If not and the lender will deal on the same terms with the public then consider going that route.
You may find that the slice the broker was being paid is on the back end so there might be little difference in what you pay.
Posted by Robby C on September 16, 2005 at 12:00:44:
Went to a meeting with my mortgage broker. Meeting was with a local bank VP. Other than introducing me, I don’t see why I need the mort. broker for the deal at all.
I am not sure why I would be paying this guy for anything now other than as a courtesy (payoff) for getting me an “in” with the local commercial loan banker.
Posted by Joe C. (AR) on September 16, 2005 at 22:59:04:
If it were me, I’d keep the broker involved on this one just to preserve an honorable reputation. I’d take the next one to the banker directly. If it doesn’t work out, the broker is still a fall back without any hard feelings or ill will. You’ll look more trustworthy to both of them, and I think that’s worth a few bucks.
Posted by Randy (SD) on September 16, 2005 at 15:08:53:
What your mortgage broker knows that you don’t know will be the difference between success and failure. Do you know how to package a loan? Do you know what the VP’s “expectations” are and specifically what they require for approval? What volume of business are you doing with this VP? Maybe you’re doing one loan a month or one loan every six months and your mortgage broker is doing 30 loans a month, yours is only one of 30-do you think he might be able to get it approved? NEVER bite the hand that feeds you.
What makes you think the VP will deal directly with you anyway? Oh sure, he’ll be politically correct and tell you they value your business but “Sorry Robby, we just can’t do this one” because he knows you just went around the broker. What makes you think that bank is the only source the broker has? If they don’t buy your paper, the broker has other ways to go-do you? There’s so many things wrong with your analogy, it will come back to you “what you sew, so shall you reap”.
Re: Do I need the loan officer? - Posted by Brian (UT)
Posted by Brian (UT) on September 16, 2005 at 13:17:27:
Robby
First you need to find out if its really costing you because fees are often paid by the lender to the broker, and your not going to pick up that money dealing directly.
And he pointed you to the right place didn’t he? It’s the old story about the plumbing bill $500, detail Hitting pipe with hammer $10, Knowing where to hit $490. Now next time you know where to hit.
Posted by Robby C on September 16, 2005 at 20:22:54:
Hey Randy, put thy forked tongue away. This is a small town. I know the appraisers he uses. I know the loan broker. We all went to high school together. This is a small bank, trying to get off the ground. I have never bitten the hand that feeds me.
If I can be more efficient without the middleman, why not? The broker has received plenty of my business without my asking for “specials.”
Posted by Randy (SD) on September 17, 2005 at 09:44:06:
You come on a public forum like CRE and post a question ?Do I need the loan officer?? tell only half the story and challenge the responses you receive. Then you come back and dig yourself into a bigger hole by telling us how it is a small town, you went to school with the loan broker etc. etc.
You have obviously already made up your mind you are justified in circumventing the loan broker, so go ahead and do it. Just remember the ?advise? you were given; Packaging a loan for approval is what it?s all about. Loan officers typically review numerous loan proposals daily, like a HR person reviewing resumes; you generally have a small widow of opportunity to grab their attention, your ?package? can be a pass in 5 minutes or less. But you do it your way; you obviously know what you?re doing.
Good Luck