Income vertification for Mortgage Broker.
Income vertification for Mortgage Broker. Any information?
The only fact here I have to share is experience with recent buyers...the
best example is that I had a single woman buyer who wanted to buy a two
family ...I gave her a few names ...both a the local bank and a couple
brokers I knew had programs that would help her. Both brokers attempted to
put her into programs with minimum documentation...the rates were 7.375% and
7.75%....she then went into Trustco which is a local bank in upstate
NY.....the rate there was 5.875%
The closing costs at the broker shops were "estimated" between $5000 and
$7000....it ended up costing her about $2300 to close at Trustco.
As far as wholesale rates being givin out on the street from the lender
direct...the answer is yes.
Charter One Bank has both direct origination and broker products...I know of
purchasers getting better rates going directly to Charter One than by
getting a charter one broker product.
I don't believe there are any laws stating a lender has to offer a lower
wholesale rate than street rate...most wholesale brokers get broker business
from out of state....where there is no direct competition with their street
rate.
I would say yes....only the product and profit are both completely
different. The typical finance manager at a car dealer builds in a 2% - 3%
profit per deal. Our country is one of the only where people are afraid to
bargain and barter over price. In most instances salespeople are so afraid
of losing a sale that they are very willing to negotiate.