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I’m currently dealing with a local mortgage broker but I want to be sure that I’m getting the best mortgage possible since it’s going to be a 30 year commitment. I am looking to get an FHA loan. Is there an online site worthwhile or should I go to a giant megabank or continue with a broker?

2 Thoughts on I need mortgage advice! Are online lending sites like or worthwhile?
  1. Reply
    J M
    June 19, 2012 at 2:31 pm

    I am going through this myself at the moment.

    I suggest contacting a couple of brokers. And have them model your loan and give you a good faith estimate.

    Personally, I did not go the online route, after the meltdown I was a little nervous. There’s a lot more to consider besides interest rates and such, like who can you call in five years if something comes up.

    I settled on a broker through Century 21 because they do not sell the mortgage. That is important to me. I want to be able to contact the same person throughout the life of my loan if I need to.

    FHA loans are pretty much the same deal no matter where you get them. You might save a percentage point by hunting around, but for me, the security of knowing who you will be working with and the option of going in for a face to face meeting with a live person is more important.

    It used to be that when you got a mortgage, you were with the same banker for as long as you had the loan. The advantage was that if something happened and you were a month or two late, it was in their interest to help you over the hump and get you back on track. Banks are not in the business of owning homes and you need a lender that wants to keep you in the home.

    Part of the problem with all of these foreclosures is that the loans get sold over and over, and trying to find out who owns your loan and get them to work with you is a nightmare. I’ve looked at foreclosed homes that have been empty a couple years, and passed from broker to broker because the banks don’t know what to do with them. They deteriorate and it is a shame.

    So, no matter who you go with, know your broker and if possible have an office where you can walk in, and know some body’s name.

  2. Reply
    June 19, 2012 at 3:19 pm

    Most mortgage companies have access to the same loan programs. You are wish in selecting a local mortgage broker. He understand the local market, is readily available in the event something minor or major happen during the loan process.

    Not only does he know the local market you are not just a number with this guy as he can offer personal services that might not be available from a mega bank of someone that is miles away.

    FHA publish guidelines that all mortgage brokers and banks has to go by. The primary thing that establish your interest rate is your credit score, therefore if you have a certain credit score another lender miles away from you will not be able to get a better mortgage loan for you.

    Your job is to make sure you understand the mortgage or mortgages that you are approved for. Ask you mortgage broker to explain each and every mortgage loan you are qualified for.

    Each person’s financial situation is different, therefore what might make your friend or family members a good mortgage, your financial situation might call for a different mortgage. So in order to make an intelligent decision you would need to know what you mortgage programs you are qualified.

    Make sure you understand the mortgage you select for yourself. You would want this mortgage explained to you. When you sign your loan docs the interest rate, monthly mortgage payments and number of years your loan is as explained to you by your mortgage broker.

    If anything is different you should not sign theses docs until after any changes made are explained to you. Contrary to popular belief most people that get into trouble with their mortgage did not come from their mortgage broker, but not understanding what they were signing and were afraid to stop and get things explained to them because the felt as if they would be belittled.

    When you sign your loan docs you are saying that you understand the mortgage program you are signing for. Now the blame is on you not the mortgage broker or anyone else. Educate yourself prior to signing any loan docs.

    You will be the one making the monthly mortgage payment,not me nor the local mortgage broker or Di tech or the lending tree.

    Once the mortgage loan is closed these companies are gonna sell your mortgage, collect their fees and points, wash their hands of your mortgage loan and go to the next client.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

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