Before you get a new mortgage read the following! Since Dodd Frank was passed in 2011 there are only 2 ways to get a mortgage: 1) Borrower Paid and 2) Lender Paid.
Borrower Paid means the Borrower will pay the commissions (which are negotiable) to their Mortgage Broker. Ancillary fees CAN be added such as processing or application fees so beware. A lower rate can be obtained IF the Borrower thinks it best to pay these fees. Lender Paid means the Lender will pay the Mortage Broker and the commissions paid are built into the rate the Borrower gets.With Lender Paid, no ancillary fees are allowed, and the commissions are capped at 3% max. of the loan amount that can be charged ( does not have to be that much).If the Borrower shops and can find a Broker who is less than 3%, say 2.500% then a lower % rate can be obtained. The Lender pays the fees BUT they have to adsorb what is paid in the % rate offered to the Borrower, so shopping is key.
Before the Borrower is quoted any % rate, they should be told what comp plan the Broker is quoting them from such as 3% or 2.50%, 2.00%, etc. This will allow the Borrower to shop to get a better % rate deal. BUT don't expect any of this to be told to you W/O you bringing it up. Very seldom is it discussed. Do NOT expect your Realtor to go over this either, as many are unaware and others want you to use their Mortgage Broker of choice. This takes away free enterprise.
Diversified Mortgage Brokers goes over ALL of this information and MORE with our Clients. No one beats us, as we offer the lowest comp plans and the best rates. We EDUCATE our clients on the WHOLE mortgage process. We are the oldest Mortgage Broker in Central Virginia ( 30 years) and IF you are shopping for a Virginia mortgage, call us before you get hit with a higher rate than you deserve. We vwill also give you many other ideas on saving in other areas of the mortgage process.
Diversified Mortgage Brokers- Tel: 434-237-3143; Email: dbi4009@aol.com; Web: www.diversifiedmortbrokers.com; NMLS #188875; 100 Copley Pl. Ste. D Lynchburg, Va. 24502