Mortgage Question
 

Ok, for all the brilliant people on PPOT, has anyone heard of Global Equity Lending? They are some kind of multi-level mortgage broker thing. Our Realtor wants us to get pre-qualified for a loan through them and oh yeah, you might want to make some money on the side working at home.

So what are your thoughts? Especially from those in the industry.

I would say we are already giving you 3%, so bite me...

Ask what their rates and closing costs are first before you net your realtor a kickback.

That's exactly what it is.

No thanks.. You might get someone who actually knows what's going on, but real pros are independent..

Get a personal referral, then check a major bank.

rjp

Time to laugh at Global Equity lending as you fire your realtor for suggesting such sillyness.

Agents like to use a lender that they have a working relationship with and visa versa. There is nothing sordid or sneaky about it, nor do they recieve a kickback for the referral. Here in California a kickback for a loan referral equals jail time. It enables all parties a smoother transaction. You still want to do your price shopping though.

Run far and run fast. Despite the admonition above, I question your agent's judgment, if nothing else, for suggesting such a thing. Call the bank you have your checking and savings with, call their biggest competitor, and call whoever you have your old mortgage with. Tell each what the other is offering and take the one that emerges as the best deal. Don't try anything tricky or exotic when you're doing your mortgage. Too many ways to slip up and if you do, it's your house.

My realtor is a friend of my brothers who is giving me a 1% commission rate selling the house. He is a really nice guys who is just a little into those "make money from home" things. I have several other friends like that too.

I wanted to get your views more on the GEL side. It seems to verify my initial impressions of them. I currently have Countrywide and have had ZERO problems or issue in 5yrs with this house. I think my best bet is to stay with them.

CW isn't a bad choice, if you must play with banks, and have reasonable credit, I'd go to B of A.

They are the ones giving the guys who work at WAMU and CW fits due to the deals they're handing out.

rjp

Why can't every borrower be like Wayne? :)



nowadays if you don't escrow some lenders don't allow it on homebuyer assistance loans, or if you are anything less than 10% down.

I interviewed 3 mortgage brokers. I told all 3 that I was shopping price on a 15 year fixed loan. One broker was indignant. Said it wasn't a "competition". The other two brokers, knowing I was shopping, gave me great rate quotes.

I'm presently an active licensee here in California. What I'm saying is by all means do price shop and by all means go with the best deal. In my experience I have found that there is more to a transaction than simple numbers. It can be very personal, ego driven with different parties showing a fair degree of favouritism. To make a long story short some lenders can be a complete PITA and damn near derail a transaction. Same way with a lot of conversations on this board. If the broker has a prefered lender and the lender can offer equal or better terms, then go with that.

I completely agree with all of you. ;)

One thing that turned me off was when the dude from GEL wanted a non-refundable upfront $115 to even apply for a pre-approval. They told my wife that every lender does this.

I called CW and not only do they do free pre-qual but since I am an existing customer they do not charge loan origination fee. I am waiting for their rates.

I WILL get several quotes because I understand that they can just push this "fee" somewhere else....

Sorry, but not necessarily true. It is entirely possible a company can promise and not deliver. If your past the loan contingency time frame you can lose your deposit.

Generally lenders sell the loans and retain the servicing.


Am I banned now?

All pre-quals are free or at least I would laugh at any loan officer who wanted to charge for one. Don't think CW is giving you a deal because they're not charging you for a pre-qual. And I wouldn't make much of the "no loan orig. fee". Lots of places advertise low or no closing costs. They just build it into your rate or call the fees something else. Believe me, you will pay for your loan origination one way or another. And most of the closing costs aren't controlled by the mort. co. anyway, but rather set by the state and county as a function of the loan amount or sales price.

One thing -
 

Between sold loans (FNMA investor, whatever) a bank and broker are pretty close, the broker having the ability to lower / work for less at will, wheras a guy in a bank only sees a published rate sheet and has to charge that -

If you're lucky enough to find a broker that isn't into playing silly games like

"we need an upfront deposit to app you" -

which in most cases requires the deposit to be put into a seperate trust account (I know of few if any brokers which maintain one - therefore the request for one is illegal - not to mention it's fully refundable since it's against federal law to collect up front fees and not return them as a MB in the event the deal isn't consumated - under any terms)

You can find a broker who can close an easy file, quickly and for cheap if there's no headaches involved. Fully documentable income, good assets and credit and a reasonable guy will work for next to nothing. I would if I knew the borrower was easy to qualify and he's shopping, why not?

However, if the bank is sitting on the paper - like B of A's AACORN loan program it's next to impossible for a broker to compete since they have no money to lend and collect interest on. Those are the programs to seek out. If I was a borrower i'd strongly consider those assuming that decent credit and fully documentable income was to be considered.

Anyone else, would probably be better served by a decent broker. I would've laughed at that monkey asking for a "deposit" up front...

rjp

When I was studying here with Shorewood there was discussion on this topic. It is possible that a lender can promise but not have the ability to perform. Chances are slim with a reputable company, but not so for a mom and pop or fly by night operation. If you'll notice the availability and ease of obtaining a sub prime loan and %100 financing is much harder to obtain. There was also a discussion on how the funds were transfered to lenders account. A cashiers check can hold up the process whereas wiring the funds is ideal.

I would stay away from them unless you havenet heard of Primerica....Your Realtor might have joined up with them also...I got approached by a Rep of Global Equity who said the business was started from an Art Williams style..They do real estate, mortgages and secruities, which is scary since I clean up messes from Primerica deals...

[QUOTE=ed martin;3398524] If you'll notice the availability and ease of obtaining a sub prime loan and %100 financing is much harder to obtain. There was also a discussion on how the funds were transfered to lenders account. QUOTE]

100% financing ended a couple of months ago, now the sub-prime mess is spilling over to the prime mortgage side due to all the banks not being able to take the hits from the sub-prime mess. I'm leaning towards doing commerical lending , its less of headache

100% is still available on purchases, even stated. I got a 609 FICO to 100% approved today / purchase.

It's basically gone on N/O/O and if there's a 2nd involved.

Commercial lending is where you get screwed over last minute for your commission. Everyone has 2 LO's working on every deal, as a backup and your fees are cut before signing. Also, unless you know the investors you're basically a referral source.

I've got a realtor in my neighborhood that's also hooked into Global - he still sends be biz since he can't figure anything out..They have no one to guide the newbies.

rjp