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Are there still brokers out there? My realtor is recommending a broker.

Is it not better to go direct with the bank? I thought brokers were squeezed out, but my realtor is recommending me get qualified for my loan thru a broker. Do u think he is getting a kick-back? Please tell me truth. by JoanKo_644_544 from San Jose, California. Feb 2nd 2012 Reply


Crestico Funding (CresticoFunding)
#314 ranked lender in California - 337 contributions

Hello Joan,It's hard to say if your Realtor is getting a kickback or not, first of all its illegal and more importantly its unethical, however the answer to your question depends on the brokerage you work with. i can tell you as a small brokerage firm in California, 90% of the time if we don't beat our competitor's rate and fee we will match it, but on the other hand, as a privately owned brokerage, we provide a customer service that no Bank can ever out-do, we want to earn your business and establish a relation with you, a loan officer who is sitting behind the desk at the Bank doesn't really care if you get the loan from him or not cause he/she is getting paid the hourly/salary wages anyway.I be more than glad to review both scenarios that you have by the bank and your Realtor's referral and provide you with a unbeatable quote.If you like more information please contact Houtan Hormozian @ (310) 933-4748 or Houtan.Hormozian@Crestico.com

Feb 2nd 2012
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 351 contributions

Working with a bank does have its pros and cons, just as much as working with a mortgage banker/broker. If you have 20% down, 740 or greater FICO score and a pre-existing relationship with a bank then utilizing their services could be of greater value. If you don't meet the aforementioned criteria, seeking out the help from a mortgage banker/broker would be a better fit for you in the home buying process. Good luck and Happy Ground Hog Day!

Feb 2nd 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

This is a misconception that has been around for years and continues to be pushed by the big banks.. First of all, brokers are much more qualified to do your loan than your local bank.. Brokers are required to go through extensive education, background checks, and testing. They are also required to be continually educating themselves to stay on top of the industry changes.. None of this is required by your local bank loan officer. Brokers have a vast network of lenders offering a variety of different programs, where the big bank has very few loan choices... if you don't fit in their box, you don't get a loan. Brokers offer much better pricing and lower fees then the big banks, making your loan cost less... And as far as a "Kick Back"... there are very strict laws in effect that prohibit both the realtor and loan officer from receiving compensation for referrals... neither professional will jeopardize their careers for a few extra bucks... the loan officer / realtor relationship is solely based on past experience and qualifications... the realtor will only refer you to someone he/she knows and trusts to get the loan done, and be honest throughout the process.. WilliamAcres.com

Feb 2nd 2012
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Scott Lawson (amhloans1)
#277 ranked lender in California - 7 contributions

Hi Joan,Brokers have more options for the borrower, wholesale rates, and much faster turnaround times. Your local bank employee does not have to go through the rigorous licensing process that brokers have to either--we have our backgrounds checked extensively now. And with the new compensation rules that went into effect on 4/1/2011, I cannot collect a nickel in fees from you directly.More importantly though, whether it's banker or broker, it comes down to the individual you are working with. Ask your loan originator for references. Check them on Yelp. I have worked quite a bit in the San Jose area (I've put several Netflix employees into their homes). It's unlikely that any bank can match what I can offer. Check us out on Yelp.Scott LawsonAmerica's Home Loans707-763-7900DRE 01895185 NMLS 312312

Feb 2nd 2012
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Aaron Brown (aaron.brown)
#77 ranked lender in Arizona - 37 contributions

Compare and Contrast the Fees given by a broker and a bank, as interest rates are likely to be the same.I would be more than happy to assist you with any questions;Aaron Brown, ( Flagstar Bank ) 888-760-8383 Ext: 226; aaron.brown@flagstar.com

Feb 2nd 2012
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Bruce Conn (BruceConn)
#275 ranked lender in California - 19 contributions

Remember the old adage: "Trust, then verify." If your real estate agent has worked with the mortgage broker regularly, follow his advice and engage the mortgage broker. Building a team in a real estate transaction is essential to getting through the process. Escrow officer, title officer, home warranty provider, termite inspector, mold inspector, processor, funder, and more... When they are comfortable with each others' work the client benefits. To be safe, when you get your Good Faith Estimate from the mortgage broker, go on the internet and get comparisons. As to kick backs? The sharing of business referrals is most often the only substantial exchange. Frankly, as a mortgage originator, if anyone deserves a freebie, it's me. The real estate agent's client comes up with 10% of the purchase price and he earns 6%. I come up with 90% of the purchase price and only get 1%.

Feb 2nd 2012
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Christian Van Schyndel (Christ_926_609)
#52 ranked lender in Utah - 7 contributions

Hello Joan, Your Realtor should be a trusted adviser who is there to help you purchase a home. He or she has relationships with people who can help you. Your Realtor does this everyday and has experience. That is why you are using a Realtor. If you can't trust your Realtor and use who he recommends then you should get a different Realtor. I am a Broker and I believe most brokers will take much better care of you and your loan will close on time for less money and with a better rate. I am sorry that I am not in California to help you. Best of luck.

Feb 2nd 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

This is a great question. Is a kick-back involved? Probably not. They are illegal. Neither a Real Estate agent nor a Licensed Mortgage Originator is willing to risk losing their license for a few bucks. The real reason your agent is recommending a Broker is that a Mortgage Broker (and Mortgage Banker) work really differently than a big bank employee. I posted an article on my blog on January 26th that addressed this very issue. I encourage you to read it and then follow your agent's advice and avoid the big banks. You can find the article at lender411.com by following this link. http://www.lender411.com/mortgage-articles/4155/Mortgage-Professional-vs--Bank-Loan-Officer/ Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Feb 2nd 2012
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Korene Clopine-Seaman (korene)
#68 ranked lender in Arizona - 89 contributions

Joan, I cannot answer for your realtor. I can tell you that most realtors I know and work with are ethical and knowledgeable and highly professional. As a direct lender, we have most any program that you would want or need. Please call me and I would be pleased to help you. Korene L. Clopine-SeamanNMLS# 218520Senior Mortgage OriginatorAZ License # LO-0916745CA License # DOC-218520"You can leave me a Loan"(R) NMLS# 3233AZ-Mortgage Banker License #BK-0903998W J Bradley Mortgage Capital LLC.9237 East Via De Ventura, Suite 100Scottsdale, AZ 85258 USADirect Phone: 623-340-0934 Fax: 623-218-1807

Feb 2nd 2012
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